Pepper, a tech platform for food distributors, recently secured $50 million in Series C funding. This investment will help Pepper innovate its products, enhance AI features, and expand its reach in the food distribution market. The funding round was led by Lead Edge Capital, with support from previous investors like ICONIQ and Index Ventures.
Based in New York City, Pepper streamlines essential processes for over 500 food distributors. Together, these businesses account for nearly $30 billion in yearly sales and serve more than 100,000 operators across the country. Interestingly, independent distributors make up about two-thirds of food distribution in North America, representing over $1.4 trillion in annual sales. However, many in the industry still use outdated systems and manual processes.
Pepper aims to tackle this issue with more than 70 ERP integrations. This allows distributors to upgrade their systems without the headache of totally replacing existing infrastructure. The new funds will also support advanced AI and data solutions that can help increase profitability and automate routine tasks.
The company plans to enhance various modules, like Storefront and Sales Hub, which will provide comprehensive support for operations. By expanding integrations, Pepper aims to improve onboarding and system compatibility, making life easier for distributors.
Lead Edge Capital, a firm known for backing innovative tech businesses, sees potential in Pepper’s approach. The firm has also invested in major names like Alibaba and Asana.
Key industry players have praised Pepper. Bowie Cheung, Pepper’s CEO, stated, “Independent food distributors can no longer survive on legacy technology. Our product gives them the edge that larger companies have typically enjoyed.”
Feedback from users is also positive. Jackie Oakes, from Flanagan Foodservice, noted that Pepper revolutionizes daily operations, giving teams newfound clarity and speed. Brian Handley of Palmer Food Services echoed this, saying Pepper’s software is crucial for future-proofing their operations.
In summary, as food distribution evolves, platforms like Pepper are essential for helping independent distributors modernize and thrive in a rapidly changing landscape. For more insights on the future of food distribution technology, check out this report from McKinsey.
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