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Technology

MarginEdge raises $45M for back-office restaurant software

The company founded by former operators offers invoice processing, inventory management and other managerial tools.
MarginEdge founders
Bo Davis and Roy Phillips founded MarginEdge. / Photo courtesy of MarginEdge

MarginEdge, a back-office software provider for restaurants, raised $45 million in a Series C funding round. 

The investment led by Ten Coves Capital doubles the company’s total funding to date. MarginEdge said it would use the money to grow its team and improve its products.

Those products include invoice processing, inventory management, recipe analysis, accounting and other tools designed to make running a restaurant easier. 

The Arlington, Va.-based company was founded by former restaurant operators Bo Davis and Roy Phillips, who said they’re all too familiar with doing invoices and inventory by hand. MarginEdge’s technology automates many of those manual processes.

“Our North Star has always been empowering operators with technology and real-time data to make more informed decisions and getting them back to doing the part of the job they love,” Davis said in a statement. 

MarginEdge currently works with more than 4,000 restaurants, from single-unit independents to chains.

Ten Coves has stakes in a variety of financial technology companies including two in the restaurant industry: 7Shifts and TouchBistro. Leaders said they were impressed by the quality of MarginEdge’s product and its restaurant expertise. 

“There's still such an enormous opportunity before them. Our team is excited for the opportunity to further accelerate their mission,” Ten Coves co-founder and Managing Partner Ned May said in a statement. 

Other participants in MarginEdge’s fundraise were Fiserv, Derive Ventures and all of its previous institutional investors. 

As staffing and inflation remain a challenge for restaurants, operators have shown demand for technology that can ease time-consuming managerial duties. Inventory management systems, in fact, topped a list of restaurants’ planned tech investments compiled recently by the National Restaurant Association. 

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