Foodomarket raises £9.5m in Series A funding round

Foodomarket, a digital B2B food marketplace for the hospitality industry, has raised £9.5m in a Series A funding round to support expansion.

The round was led by European venture capital firm Alven Capital. Funding will be used to support the company’s official UK launch, including expansion out of London as well as expansion into the US. The company was founded in France and has now carried out a 12-month trial in the UK, which saw 500 London restaurants sign up.

Foodomarket also plans to use the funds to roll out its new app and website, and to expand its teams in local markets to “provide customers with a tailored experience.”

The company describes itself as an open and transparent online marketplace, where any seller who meets “rigorous standards” can list their produce. Buyers can then make decisions based on quality and price, with Foodomarket handling and guaranteeing payments for suppliers.

Foodomarket reported that its growth tripled in 2022, adding that the platform has a 92% repeat business rate. The company claims that buying through its marketplace is 15% cheaper than via traditional distributors, and gives sellers access to a large pool of buyers which lowers the risk of stranded assets and food waste.

Co-founders Eric Nivoix and Matthieu Boivent have more than 20 years of relevant industry experience combined and have built up several B2B marketplaces in different industries.

Nivoix said that the funding round has been a “major moment” in Foodomarket’s evolution, commenting: “When we set out, our aim was to mend a broken, outdated system and generate opportunity for entrepreneurs and small business owners”.

He added: “Our impressive performance in France shows we’re doing something right and launching our offering in the UK was the logical next step. We can’t wait to hit the ground running.”

Rodolphe Menegaux, partner at Alven, said that the B2B marketplace model is “shaking up and digitalising the practices of players in this value chain.”

“The depth of the market enables us to envisage building a leading international player and bringing ever greater value to our partners and customers,” Menegaux commented.