Chowbus (see Pulse 2.0 profile here), an AI-powered technology platform serving culturally rooted restaurants, announced it has raised $81 million in a new funding round led by Prysm Capital and Left Lane Capital, with participation from Dutchess, Fika, and Avid Bank.
The Chicago-based company said the funding marks a strategic expansion beyond its integrated point-of-sale and management platform into a broader AI-driven operating system for independent restaurants.
Chowbus said it currently generates more than $120 million in annual recurring revenue, representing ninefold growth over the past four years. Over the same period, the platform has processed roughly $4 billion in annualized transaction volume across restaurants operating in all 50 U.S. states and Canada.
The company plans to use the new funding to expand its AI-powered tools across several operational areas for restaurants, including marketing automation, accounting processes, and supply chain optimization. Chowbus also intends to deepen its services beyond traditional software offerings by integrating business services such as supply ordering, insurance, and financial tools designed to reduce operating costs for restaurant operators.
Founded in 2016, Chowbus began as a technology platform focused on independent restaurants serving culturally rooted cuisines, particularly Asian restaurants. The company said this market represents about 16 percent of the U.S. restaurant sector and is projected to reach a value of about $240 billion by the end of 2026. The segment has grown about 135 percent over the past 25 years.
Chowbus said its technology platform combines point-of-sale systems, marketing tools, analytics, and AI-driven services to help independent restaurant operators compete more effectively with large restaurant chains.
The company also plans to expand its international presence by entering Canada while continuing to support tens of thousands of independent restaurants already using its POS and analytics platform.
KEY QUOTES:
“Our journey has always been about technology, equality, and reinvention with purpose. The success of our first AI product, AI Digital Ads, has proven that we can help independent restaurants compete at a much higher level. We are now building the next-generation AI restaurant platform to support entrepreneurs, the backbone of our communities. This is the most exciting era for the restaurant industry since the move to cloud-based POS.”
Linxin Wen, CEO of Chowbus
“Linxin and the Chowbus team have shown exceptional execution, transforming the business into a scaled, mission-critical platform for restaurants. With strong recurring revenue, expanding transaction volume, and a strategic move into AI-driven services, Chowbus is at a clear inflection point. We’re proud to partner with the Chowbus team as they build the next-generation AI platform that empowers operators to compete and grow in an increasingly complex market.”
Kerry Wei, Partner at Prysm Capital
“Chowbus is leveraging AI to enter these massive service areas, providing 10x better efficiency than traditional solutions, while maintaining the essential human touch required in the hospitality industry. By moving beyond software to become a true operating partner, they’re helping these restaurants compete at a level previously reserved for chains.”
Harley Miller, CEO and Managing Partner of Left Lane Capital
