SAN FRANCISCO, March 12, 2024 (GLOBE NEWSWIRE) -- Loop, a leading SaaS provider enabling restaurants to maximize their third-party delivery service profitability, announced today that it has closed $6M in Seed funding to partner with restaurants on that journey.
The round was led by Base10 Partners with participation from Afore Capital. Funds raised will support Loop’s accelerated growth, as it continues to partner with top restaurant brands to make delivery a more sustainable revenue stream. Loop will spend this year investing in its expanding suite of products to serve restaurants’ complex back office needs.
“We are always looking to back founders that have lived the problems they’re solving with software,” noted Rexhi Dollaku, General Partner at Base10 Partners. “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.”
Loop’s AI-powered platform already serves the nation’s fastest-growing brands like Dave’s Hot Chicken, Freddy’s Frozen Custards, Mo’Bettahs (Savory Fund Portfolio) and Mooyah (Gala Group) across thousands of locations, reconciling over $100M of restaurant transactions. Loop’s solutions mean restaurants of all sizes can spend less on costly accounting thanks to the company’s ability to combine automation, and best-in-class AI technology.
“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,” said James McGeehee, CFO of Dave’s Hot Chicken.
Third-party delivery is already responsible for more than 25% of revenue for countless restaurant brands, and is set to be a $1T global industry in this decade. Restaurants pay 20-35% in commissions to delivery platforms unlike other revenue channels, challenging their financial models and accounting systems. Additionally, 3-4% of orders that leave the door have accuracy issues that affect guest experience and the restaurant’s brand, decaying revenue. Loop applies proven technology to help restaurants stay in lock-step with all elements of finances & operations related to third-party delivery. Now, that whole new business vertical, which can often be a pain point for operators, can be a sustainable revenue stream.
“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,” said Anand Tumuluru, co-founder and CEO of Loop. “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.”
To learn more, visit tryloop.ai.
About Loop
Loop is a pioneering SaaS provider specializing in maximizing profitability and operational excellence for restaurants in the 3rd party delivery space. By addressing critical pain points such as financial reconciliation & bookkeeping, sales tax & franchise fee liability, real-time store availability management, and marketing optimization, LoopAI offers a comprehensive suite designed to elevate the customer experience and financial outcomes for its partners.
About Base10 Partners
Founded by Adeyemi Ajao and TJ Nahigian, Base10 is a San Francisco-based venture capital fund investing in founders who believe purpose is key to profits and companies that are automating sectors of the Real Economy, including transportation, retail, logistics, and construction. The Advancement Initiative, Base10’s growth-stage fund, donates 50% of profits to underfunded colleges and universities to support financial aid and other key initiatives. Portfolio companies include Notion, Figma, Nubank, Nowports, Motive, Chili Piper, and Popmenu. Connect via base10.vc.
Media Contact
Joshua Levitt
Media Relations for Loop
josh@fikacollective.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e6322948-dfc2-43d1-b2ba-d3ecee2ba25b
