Loop, a SaaS provider enabling restaurants to maximize third-party delivery service profitability, has closed $6 million in seed funding, led by Base10 Partners with participation from Afore Capital. Loop will use the money to invest in products to serve restaurants’ complex back office needs, said Anand Tumuluru, co-founder and CEO of Loop.
Third-party delivery is responsible for more than 25% of revenue for many restaurant brands and is set to be a $1 trillion global industry in this decade, Tumuluru said in a company press release. Restaurants pay 20-35% commissions to delivery platforms, 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 decaying revenue.
Loop, however, tries to help by keeping restaurants in step with all elements of finances and operations related to third-party delivery,
« 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, » Tumuluru said. « 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. «
Loop’s AI-powered platform serves a variety of brands, including Dave’s Hot Chicken, Freddy’s Frozen Custards, Mo’Bettahs (Savory Fund Portfolio) and Mooyah (Gala Group) across thousands of locations, reconciling over $100 million of restaurant transactions.
« 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, » James McGeehee, CFO of Dave’s Hot Chicken, said in the release.
