Odeko, an online distributor for local coffee shops, has raised $53 million.
The Series D round was led by existing investor B Capital with contributions from GGV Capital and Tiger Global Management. Odeko plans to use the funds to keep growing its technology, which helps independent cafes and coffee shops order supplies and manage their inventory.
The New York-based company also offers a consumer-facing online ordering system.
Odeko says it can get shops essentials like lids, cups, syrups and dairy faster and cheaper than traditional distributors. It offers overnight deliveries from its own warehouses in 16 markets and uses its scale to keep costs low. Shops can save up to 21% on products ordered through Odeko and can save 10 hours a week spent managing vendors, the company said.
“Odeko has very quickly established itself as the go-to operational partner for independent coffee shops and cafes across the U.S.,” said Sami Ahmad, general partner with B Capital, in a statement. “The company has proved to be a critical partner to the independent businesses it supports, streamlining operations and removing friction from day-to-day tasks.”
More than 10,000 businesses currently use Odeko. It has added six new markets in the past year, including Dallas, Miami and Portland.
There’s no fee to order goods from Odeko. It charges shops 5% on customer orders through its mobile and web apps.
The company is one of a growing group of supply chain startups looking to digitize and localize restaurant deliveries and provide better inventory data.
“Our customers face countless operational and environmental challenges every day, and our goal is to ease their burden so that they can focus their time and resources on building the parts of their business they love, while serving their neighborhoods and communities,” CEO Dane Atkinson said in a statement. “This capital allows us to do just that, and we are grateful to our investors for their continued support.”
Odeko was founded in 2019 and has now raised a total of $177 million.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.