Choco, a company aiming to build a more sustainable food system for restaurants and suppliers, made another big raise — this time $111 million in what it calls a Series B2 round — to take its valuation to 1 .2 billion dollars.
The new investment, an internal round led by G Squared alongside Insight Partners, comes just six months after Berlin-based Choco received $100 million in a Series B round, led by Left Lane Capital. , to give the company a post-market valuation of $600 million.
If you follow us, we’ve covered a number of Choco funding rounds over the years, including a $63.7m Series A that raised in two different time periods, a $33.5m round in 2019 and a $30.2 million round in 2020 – at a valuation of $230 million – to bring total funding to $282.5 million since the company was founded in 2018.
The company is taking on a $6 trillion restaurant industry that traditionally does business via spreadsheets or pen and paper. He has developed software that digitizes ordering, supply chain and communications for suppliers and restaurants to give back some of that time.
“We’ve been lucky with our growth and lucky in a really big space where we can grow quickly without getting too stuck,” Choco CEO Daniel Khachab told TechCrunch. “When our investors offered additional funds, we said ‘let’s go’ so we could accelerate, invest in our product, customer service and team training.”
Choco also collects real-time data so suppliers can more accurately balance supply and demand so less food is wasted before it reaches the consumer. Its goal is to “completely digitize the wholesale food market across the world by 2026 in the name of zero food waste”.
The company is not alone in tackling food waste. For example, grocery store app Flashfood raised $12.3 million to fight retail food waste, and Full Harvest raised $23 million to find endpoints for imperfect produce.
Meanwhile, Choco is active in the United States, Germany, France, Spain, Austria and Belgium, and has seen a 350% growth in users over the past year. And in February, the total value of goods traded through Choco exceeded $1.2 billion, and it works with about 15,000 restaurant customers and 16,000 on the supply side.
Khachab intends to use the new funding for product and technology development, support the company’s growth in the United States and Europe, and expand into other markets. He also plans to increase the number of company employees from the current 400 to 600 to 700 by the end of the year.
Some of the new features in the beta include financial services capabilities that will allow Choco to assume the risk for vendors by acting as a money collection agency for them to get paid within 24 hours. , while giving restaurants more time to pay.
“We want to cover the entire US and European food system,” Khachab added. “The main focus for the next 36 months will be on building value-based software for vendors, who are facing margin and pricing pressures, and finding it difficult to raise money. They will become our main customer at this point.