Odeko, an all-in-one operation and technology partner for thousands of local coffee shops, cafes, and other food and beverage businesses, announced it has raised $126 million in Series E funding. The funding consists of $96 million in equity led by B Capital and a $30 million credit facility from Banc of California.
Odeko ensures that small- and mid-size food businesses have a platform that will support their growth and enable them to compete successfully alongside large global brands. Landing during challenging macroeconomic conditions for small business owners, this funding will bolster Odeko’s support for its thousands of partners and help expand their offerings.
Odeko will use the new funding in three ways:
1.) To advance growth through new services and cost savings for customers;
2.) To buy businesses that will extend its market reach and product offerings; and
3.) To build out its leadership bench.
Odeko has over 14,000 customers, including local businesses with a regional or national presence, such as Aroma Joe’s, Birch, Blank Street, Go Get Em Tiger, Gregorys, Joe Coffee, Van Leeuwen, and White Rhino. Through the Odeko portal, customers can purchase supplies, track ordering trends, and finance equipment.
Customers using Odeko can increase their revenue, lower their expenses and environmental footprint, and save significantly on the cost of goods and time spent on vendor management. And as Odeko expands, the company will continue to build its technology platform to make business easy, receive and pass on more competitive pricing on supplies, from oat milk to paper goods, and expand availability of unique offerings, from fresh baked goods to emerging local brands.
As part of the announcement, Odeko also shares its acquisition of Butter Insurance, a specialized insurance platform for local businesses. And with this acquisition, Odeko’s customers can now access comprehensive, cost-effective insurance solutions tailored to their needs. Odeko’s acquisition of Butter Insurance is the latest example of the company’s plans to expand the scope of services and technology solutions available to its customers.
Via the portal, Odeko has also catapulted the growth of emerging local suppliers into national, well-regarded brands. For example, Dona, an independently owned tea company headquartered in Brooklyn, NY, has expanded its coffee shop business by more than 80% since 2021. And the brand credits much of this growth to its ability to use Odeko’s portal to sell its products locally and into new markets to which it did not previously have access.
Odeko is welcoming industry leaders to its executive team to accelerate its growth and expansion plans. Gautam Grover joined as President; he was previously Chief Strategy Officer at Roland Foods and President of the Flavors Group at Sensient Technologies. Ken Banas joined as Chief Financial Officer; prior to this, he held multiple leadership roles at U.S. Foods and USG.
KEY QUOTES:
“We’re excited to expand the Odeko ecosystem. This new funding will allow us to offer an unparalleled suite of services to help independent businesses gain access to the unified buying power and technology of larger chains and thrive. With Odeko’s comprehensive solutions, our customers can focus on what they do best: serving their communities and creating a great customer experience.”
- Dane Atkinson, CEO and Founder of Odeko
“Odeko is reimagining what it means to be the all-in-one operations and technology partner for independent businesses, making it easier and more affordable to run the local spots we all know and love. The growth potential for Odeko as the partner of choice for local businesses is enormous, and we’re excited to be a part of that growth.”
- Sami Ahmad, General Partner and Deputy CIO, B Capital
