Loop has raised $6 million in Seed funding to further its mission of maximizing profitability for restaurants that use third-party delivery services. The company has experienced fast growth with their AI-powered back-office platform that helps restaurants account for the logistical and financial challenges often associated with third-party delivery.
This round of funding was led by Base10 Partners, a venture capital fund that invests in companies that look to automate parts of the Real Economy. Afore Capital also participated. Loop plans to spend 2024 investing in its suite of products, which currently include features such as automated bookkeeping and store performance.
Rexhi Dollaku, General Partner at Base10 Partners, said that they are always on the look out for opportunities to support founders who have experienced the problems they are correcting with their 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,” he said.
Third-party delivery platforms can present a unique challenge to restaurants. Unlike other revenue sources, restaurants pay delivery platforms 20-35 percent in commissions. This can put a strain on their accounting systems as well as their financial models. Order accuracy issues are also prevalent and have an impact on both the restaurant’s brand as well as guest experience.
Loop provides technology that allows third-party delivery to become a manageable revenue source. And since third-party delivery can make more than 25 percent of revenue for many restaurant brands, this service couldn’t be more timely.
Anand Tumuluru, co-founder and CEO of Loop, commented that third-party delivery is here for the long haul. “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,” he added.
Loop’s customers currently include brands such as Freddy’s Frozen Custards, Dave’s Hot Chicken, and Mo’Bettahs (Savory Fund Portfolio). The company reconciles more than $100 million of restaurant transactions across thousands of locations.
