Choco, a Berlin-based food sustainability company, has raised $30.2 million in new funding led by Coatue Management. Previous investors joined the round as well, including Bessemer Venture Partners, Atlantic Labs, Target Global and Greyhound.
By providing digital tools for both restaurants and food suppliers, Choco aims to streamline the global food supply chain, thereby reducing food waste and helping fight hunger. “The food and restaurant industry produces the most essential good in the world, but still relies heavily on pen and paper. Our vision to digitalise this industry for a more sustainable future requires immense coordination and funding,” said Daniel Khachab, founder and CEO. The foodtech startup has raised a total of $71.5 million since it was founded in 2018. Just last October the company closed a $33.5 million Series A round led by Bessemer Venture Partners. As part of the recent round, Coatue will get two seats on the company’s board, going to chairman Dan Rose and partner Bennett Siegel. The fresh funding will go toward a brand new initiative to immediately help the food industry. With the COVID-19 pandemic putting pressure on restaurants and consumer access to groceries, the German company is launching a direct-to-consumer program which will deliver “restaurant-quality” produce from wholesale suppliers directly to people’s homes. Each of the company’s 17 global markets will have a dedicated direct-to-consumer e-commerce website for local suppliers and consumers. As long as restaurants remain closed, Choco says it will donate all of the profits from this initiative to regional restaurant funds.