MarginEdge has raised $80 million in Series D financing to accelerate development of AI-powered tools for restaurant operators, bringing the company’s total funding to $162 million. The round was jointly led by Schooner Capital and Ten Coves Capital, with participation from existing investors Osage Venture Partners, Derive Ventures and Western Alliance Bank.
MarginEdge currently supports more than 13,000 restaurants and has processed more than 40 million invoices representing approximately $28 billion in purchasing volume.
The company plans to use the new capital to expand AI-native product development while continuing to invest in research and development, sales and marketing.
Founded in 2015, MarginEdge provides a restaurant management and finance platform that brings purchasing, inventory, recipes, sales, accounting and payments into a single system.
Over more than a decade, the company has converted millions of restaurant transactions into structured operational data that now serves as the foundation for its artificial intelligence capabilities.
MarginEdge is increasingly using that dataset to automate routine restaurant operations and provide operators with recommendations based on their individual businesses.
One of those products is Tom the Tomato, MarginEdge’s built-in AI assistant.
The assistant combines restaurant-specific expertise, MarginEdge data and an operator’s own business information to recommend orders, identify potential waste, explain unexpected financial performance and suggest potential next steps.
MarginEdge has also expanded its payments capabilities through the MarginEdge Card while investing in sales forecasting and invoice automation.
The company recently introduced a restaurant-specific Model Context Protocol connector designed to let operators securely connect their MarginEdge data with AI platforms such as ChatGPT and Claude.
The MCP capability is intended to extend restaurant operating data beyond MarginEdge’s own application while maintaining controlled access to the underlying information.
MarginEdge serves customers ranging from independent restaurants to large restaurant groups.
The company said its technology processes more than 10 million invoices annually and automates 99% of invoice line-item coding.
MarginEdge sees the combination of clean restaurant operating data and AI as an opportunity to reduce administrative work while giving operators faster insight into purchasing, inventory and financial performance.
The Series D nearly doubles the amount of capital MarginEdge has raised since its founding.
The company plans to continue developing AI products that help restaurant teams automate back-office tasks while focusing more time on hospitality and improving profitability.
KEY QUOTES:
“Hospitality starts with people. Our job is to build technology that gives operators more time to focus on their guests. We’ve spent the last decade helping restaurants organize every part of their business, from purchasing and inventory to recipes, accounting and payments. Clean, trusted restaurant data is the heart of powerful AI, and now we can put it to work in ways that simply weren’t possible before.”
Bo Davis, Founder And CEO Of MarginEdge
“When we first invested in MarginEdge, we saw a team with an exceptional understanding of restaurant operations and a long-term vision for where the industry was headed. Over the years, they’ve continued to invest in the product, the underlying data and the people needed to turn that vision into reality. We’re excited to continue supporting the team as they help restaurants benefit from AI in practical, meaningful ways.”
Ned May, Co-Founder And Managing Partner At Ten Coves Capital
