ChefHero, on online marketplace that aims to streamline wholesale food and supply ordering for restaurants, announced today that it has raised a $12.6 million Canadian (~$9.8M USD). The round was led by Accomplice.co, with participation from Golden Venture Partners, Precursor Ventures and Math Ventures. This brings the total amount raised by ChefHero to $15 million Canadian.
Based in Toronto, ChefHero acts as an aggregator, making purchases to local suppliers on behalf of independent restaurants. Restaurants go on ChefHero to order things like produce, dry goods, meat, and other disposable goods like paper products. ChefHero places those orders with the wholesalers, who then fulfill delivery.
Working through ChefHero provides restaurants with a number of benefits, according to Co-Founder Saif Altimimi. First, it streamlines the ordering process. So instead of a restaurant going to separate suppliers for each item it needs, it can order everything through ChefHero. Second, because it is tying together orders from many restaurants, ChefHero is able to get volume discount pricing to save those restaurants money.
ChefHero currently works with more than 500 restaurants in the Toronto area. The company makes its money by charging a commission on the supplier side with the percentage dependent on the type of good and the amount ordered. The more restaurants that use ChefHero, the deeper discounts it can offer.
ChefHero was founded in 2016, has 65 employees. It plans to use the new money to build out a team and expand its recent move into Chicago, which is where one of its investors, Math Ventures is located.
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