Loop – a leading SaaS provider enabling restaurants to maximize their third-party delivery service profitability – announced that it has closed $6 million in seed funding. Base10 Partners led the funding round with participation from Afore Capital.
This funding round will support Loop’s accelerated growth as it continues partnering with top restaurant brands to make delivery a more sustainable revenue stream. And Loop will spend this year investing in the expanding suite of products to serve restaurants’ complex back office needs.
Loop’s AI-powered platform serves the nation’s fastest-growing brands such as Dave’s Hot Chicken, Freddy’s Frozen Custards, Mo’Bettahs (Savory Fund Portfolio) and Mooyah (Gala Group) across thousands of locations, reconciling over $100 million of restaurant transactions. And Loop’s solutions mean restaurants of all sizes could spend less on costly accounting due to its ability to combine automation and AI technology.
Third-party delivery services are already responsible for over 25% of the revenue of many restaurant brands, and it is set to become a $1 trillion global industry in this decade. Unlike other revenue channels, restaurants pay 20-35% in commissions to delivery platforms, which challenges the financial models and accounting systems. Plus, 3% to 4% of orders that leave the door have accuracy issues that affect guest experience and the restaurant’s brand. Loop applies its proprietary technology to help restaurants stay in lock-step with all elements of finances and operations related to third-party delivery, making this new business vertical a sustainable revenue stream.
KEY QUOTES:
“We are always looking to back founders that have lived the problems they’re solving with software. Loop’s co-founders felt all the pain points presented by back office reconciliation and digital food delivery when they ran a restaurant together. We are honored they have chosen to partner with us and are looking forward to helping them through this next stage of their journey.”
- Rexhi Dollaku, General Partner at Base10 Partners
“Loop is the best-in-class solution and a must-have solution for brands like Dave’s Hot Chicken where 25% of our revenue is powered by 3rd party delivery.”
- James McGeehee, CFO of Dave’s Hot Chicken
“Third-Party Delivery is here to stay, and we’re on a mission to make it as profitable as possible for restaurant operators of all sizes, through simple, easy-to-implement operational & financial best practices. Consumer behavior has shifted rapidly and decisively towards third-party delivery, but the restaurant back office continues to be underserved in handling revenue and operational complexity from off-premise orders. Loop positions the restaurant to succeed by providing a real time view of their cash flow both in aggregate and at an order level and the operational levers they can exercise to do even better – a capability that restaurants don’t have even for their in-store orders today.”
- Anand Tumuluru, co-founder and CEO of Loop
