By Lea Mira, RTN staff writer – 12.6.2024
Fresho, an order management platform serving the fresh food wholesale industry, has secured $17 million in Series B funding, bringing its total funding to $50 million. This investment highlights the growing interest in technology solutions that address the specific challenges of the fresh food supply chain, a sector traditionally slow to adopt digital tools. Fresho, founded in 2015 by James Andronis and Huw Birrell, aims to modernize the ordering process between restaurants and wholesalers, improving efficiency and transparency for both parties.
The platform addresses a long-standing pain point in the industry: the inefficient and often error-prone process of manual order taking and processing. Before platforms like Fresho, restaurants typically placed orders late in the evening, often via phone or fax, requiring wholesalers to manually input these orders into their systems. This process was not only time-consuming and labor-intensive but also prone to errors, leading to discrepancies in orders, incorrect pricing, and frustrated customers.
Fresho’s platform digitizes and automates this entire workflow. Restaurants use Fresho’s app to place orders electronically, accessing real-time pricing and availability information from a network of suppliers. Wholesalers receive these orders directly into their systems, eliminating manual data entry and reducing the risk of errors.
Since its Series A funding, Fresho, based in Melbourne, Australia, has demonstrated significant traction in the market. The platform now serves 53,000 venues monthly, connecting them with over 1,500 suppliers across the U.K., United States, Australia, and New Zealand. The company reports processing over 30 million orders since 2016, with 10 million of those orders placed in the past year alone. This growth in order volume has contributed to a 200% increase in Fresho’s revenue since its previous funding round. Fresho operates on a subscription model for wholesalers, with fees based on order volume, while restaurants use the platform for free.
Fresho’s commitment to innovation is evident in its development of an AI-powered order processing system. This system can interpret orders received through various channels, including voicemails, text messages, and emails, converting them into structured data that can be seamlessly integrated into wholesalers’ existing systems. This technology not only eliminates manual data entry but also reduces errors and improves order accuracy, addressing a key challenge in the fast-paced and often chaotic environment of fresh food wholesale.
While Fresho has achieved significant growth in its existing markets, the company is now setting its sights on expansion in the United States. Currently serving customers in Texas, New York, and California, Fresho plans to establish a dedicated US team in 2025 to further penetrate the market and build relationships with restaurants and wholesalers. This expansion will be crucial for Fresho’s continued growth, as the US represents a significant market opportunity for the company.
This latest Series B funding round, led by Geoff Tarrant, co-founder and former executive chairman of Payapps, will provide Fresho with the resources to pursue its ambitious growth strategy. The investment will support further development of Fresho’s platform, expansion of its team, and its entry into the US market. Tarrant, who will also join Fresho’s board of directors, brings valuable experience in scaling technology companies and a deep understanding of the SaaS business model.
The oversubscribed nature of this funding round, with participation from both new and existing investors, suggests strong confidence in Fresho’s potential to transform the fresh food wholesale industry. As restaurants face increasing pressure to optimize their operations, manage costs, and enhance efficiency, Fresho’s platform offers a compelling solution.
By streamlining the ordering process, providing real-time data and insights, and leveraging AI to automate key tasks, Fresho aims to empower both restaurants and wholesalers to navigate the challenges of a dynamic market and achieve greater success. However, the company’s long-term success will depend on its ability to execute its expansion plans, maintain its technological edge, and continue to build strong relationships with its customers.