Pepper, an end-to-end technology platform serving independent food distributors, has raised $50 million in Series C funding to expand its product innovation, deepen AI-enabled capabilities, and accelerate adoption across the food distribution ecosystem. The round was led by Lead Edge Capital, with participation from existing investors including ICONIQ, Index Ventures, Greylock, Harmony Partners, and Interplay.
Based in New York City, Pepper provides a unified platform that modernizes core workflows for food distributors across ordering, sales and marketing, accounts receivable, and embedded payments. The company currently serves more than 500 distributors, representing approximately $30 billion in annual gross merchandise volume, and supports over 100,000 active operators nationwide.
Independent distributors account for more than two-thirds of food distribution in North America, representing over $1.4 trillion in annual sales. However, much of the sector continues to rely on manual processes and fragmented, legacy systems. Pepper addresses this gap with more than 70 ERP integrations designed to connect legacy systems into a unified digital operating stack, enabling distributors to modernize without replacing their existing infrastructure.
The new capital will support the continued development of next-generation AI and data solutions to maximize profitability, automate repetitive tasks, and streamline core operations. Pepper plans to expand its Storefront, Sales Hub, Order Agent, Finance Hub, and Growth Agent modules to provide end-to-end operational support. The company will also scale integrations across the broader food distribution technology stack to accelerate onboarding and interoperability, while investing further in go-to-market and customer success initiatives.
Lead Edge Capital, a $5 billion growth equity firm investing in software, internet, and tech-enabled businesses globally, backed the round as part of its strategy to support category-defining platforms in fragmented, high-potential markets. The firm has invested in companies such as Alibaba Group, Asana, Duo Security, Grafana, Toast, Wise, and YouSign, among others.
Pepper says its platform now supports end-to-end distributor operations across commerce, sales productivity, finance and collections, embedded payments, and supplier marketing, including a growing advertising platform for food manufacturers. The company also positions itself as the only provider in its category to have consistently addressed ERP integration complexity at scale.
KEY QUOTES
“Food distribution is one of the largest and most fundamental markets in the world, yet it has long operated on manual systems and fragmented technology. This newest round of funding enables us to build the next generation of platform capabilities our customers rely on to run every critical part of their business, from ordering workflows to sales productivity and payments capabilities. Independent distributors can no longer survive on legacy technology, and our product suite gives these business owners the same technological advantage that has historically been reserved for food industry giants.”
Bowie Cheung, CEO of Pepper
“Our partnership with Pepper builds on Lead Edge Capital’s experience backing category-defining technology platforms in fragmented, high-potential markets. Independent food distributors operate at enormous scale but remain siloed. Pepper provides the shared technology infrastructure that brings that market together.”
Aaron Darr, Principal at Lead Edge Capital
“Pepper has fundamentally changed how we operate day to day. Their platform gives our team clarity and speed we didn’t have before, and it’s become a critical part of how we serve our customers at scale.”
Jackie Oakes, Director of Marketing at Flanagan Foodservice
“Pepper is building software for the future of food distribution – software we can put to work today. As the industry evolves, their platform lets us invest confidently in long-term technology while continuing to deliver on our near-term goals.”
Brian Handley, President at Palmer Food Services
