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Daily news and analysis about the food tech revolution

Deliverect

Deliverect Raises $65M for Its Delivery Integration Software

Belgium-based restaurant tech startup Deliverect announced today it has raised $65 million in Series C funding. The round was led by DST Global Partners and Redpoint Ventures, as well as existing investors OMERS Ventures, Newion and Smartfin. Deliverect’s founders also invested in the round. To date, Deliverect has raised a total of $86.8 million including this round.

The Deliverect platform manages orders from third party delivery services, funneling them into a single ticket stream that goes into a restaurant’s main POS system. This eliminates the need for a restaurant staffer to manually input these orders from the third-party delivery service’s tablet into the POS. That in turn saves time and can lessen the likelihood of order inaccuracy. 

While this class of technology has been around for years now, the move towards more delivery and takeout orders, brought on by the pandemic, has made this type of software something of a must-have for businesses using multiple third-party providers (e.g., Uber Eats, Deliverroo, etc.). 

Deliverect’s software services single restaurants, chains, and ghost kitchen operations. The company said today it will use the new funding for more R&D as well as to expand further. Right now, Deliverect’s software is in more than 10,000 restaurants around the world, including high-profile chains like Pret a Manger, Taco Bell, and Le Pain Quotidien.

Numerous other startups, including Ordermark, which raised $120 million last year, and Olo, which recently filed to go public, offer a similar product to restaurants. Which is to say that Deliverect will face its fair share of competition as it continues to expand.

The company raised €16.25 million (~$17.63 million USD) in Series B funding last year. It said today it has processed more than 30 million orders, and is now processing an average of 1 million orders per week.

Third-Party Delivery Integrator Deliverect Raises €16.25M

Deliverect, which makes software that integrates orders from multiple third-party delivery services into a restaurant’s POS system, announced today that it has raised a €16.25 million (~$17.63 million USD) Series B round of funding. EU-Startups was first to report the news, writing that the round was led by OMERS Ventures, with participation from Newion, Smartfin and the company’s founders. This brings the total amount raised by Deliverect to €19.9 million (~$21.58M USD).

Based in Belgium, Deliverect‘s software alleviates the so-called “tablet hell” situation many restaurants face when partnering with third-party delivery services. Typically, each different delivery service provides the restaurant with its own tablet to process incoming orders. Those orders then have to be manually inputed into the restaurant’s main POS system. The more delivery services a restaurant adds (Uber Eats, DoorDash, Deliveroo, GrubHub, etc.), the more confusing this proposition becomes.

Deliverect’s software acts as a middleman in this scenario. It’s software ingests the third-party delivery orders and unifies them into a single stream that automatically goes into the restaurant’s POS system. The result is that restaurant staff don’t need to monitor multiple platform for incoming orders.

Deliverect uses a SaaS model and as EU-Startups writes:

So far the startup has processed more than 3.5 million orders, supporting UK brands like Absurd Bird, You Me Sushi, Taqueria, and Crêpeaffaire. In addition, the company works with Unilever, which through Deliverect is able to integrate with Deliveroo and Uber Eats and deliver Ben & Jerry’s and Magnum ice creams directly to customers.   

Deliverect says it will use its fresh funding for product R&D, to strengthen its position in Europe and expand internationally. The company will face tough competition here in the U.S., where a number of entrenched players offer the same third-party integration services. Ordermark, Chowly and Olo are just a few of the startups promising to douse the flames of tablet hell (almost all of which are running pricing specials now to entice new, cash-strapped customers).

But there is a bigger, more existential question that dominates any talk of restaurant tech these days, and that’s the very future of restaurants themselves. Here in the U.S., at least 3 percent of restaurants have permanently closed. Even delivery services haven’t been spared as Deliveroo just laid off 350 people (15 percent of its staff). And while delivery and takeout have been a lifeline for some restaurants, this pandemic has restaurants re-evaluating their entire tech stack to see exactly what they actually need.

Deliverect’s ability to raise this much money right now speaks to at least some optimism in the world, which, is a delivery we can all welcome.