Berlin-based food supply chain management platform Choco has raised $111 million in a Series B2 funding round at a valuation of $1.2 billion. The triple-digit raise adds to Choco’s previous Series B announcement last July, with the new funds earmarked to continue fueling the beast that is product and platform development, as well as drive additional growth on both sides of the Atlantic as the company eyes new markets further afield including Latin America, the Middle East, and Asia. Since 2018, Choco has now raised a total of $274.7 million.
Founded in 2018 by serial entrepreneurs Daniel Khachab and Julian Hammer, Choco is taking on the “digitisierung” quotient that’s been the buzzword in the German markets for years, all with rather, shall we say, less-than-lightspeed progress.
However, given Choco’s four-year track record, it’s clear that Khachab & Hammer and Co. aren’t just talking about it, they’re doing something about it.
Focusing on the processes of ordering, supply chain logistics, and communications between suppliers and restaurateurs, Choco is addressing the $6 trillion under-served foodservice market by eschewing the pen and paper and manual spreadsheets modus operandi, replacing them with real-time data mechanisms that ultimately result in a reduction of the 35% of the food supply that is wasted per year in the U.S. alone.
"Wholesalers want to prepare for the digital age and need intuitive software for ordering, finance, and logistics that will enable them to remain competitive over the next 5 years. This demand is evidenced by the traction Choco's software and services have received with their ability to increase profit margins and supply chain visibility through those vectors," explained Choco CEO Khachab.
Choco’s $111 million internal Series B2 funding round was led by G Squared, alongside Insight Partners. Of interest, according to a statement released by Choco, the Series B2 was an internal raise, meaning, conducted solely amongst existing investors that include Bessemer Venture Partners, Insight Partners, Coatue, Target Global, Atlantic Labs, Greyhound Capital, Leftlane Capital, MPGI, Visionaries Club, Discovery Ventures and Christian Edler and Kevin Worner, with no previous mention of San Francisco-based G Squared anywhere on the cap table.
However, this just in, G Squared bought a seat at the table by snapping up all of Delivery Hero co-founder Lukasz Gadowski's angel investment shares.
“Choco has achieved incredible growth over the past year,” committed G Squared’s Larry Aschebrook. “We believe restaurants and the foodservice industry alike will need to adopt digital tools in order to be competitive in the long run. Choco is building a powerful ecosystem that will help to move the industry into the 21st century. We believe Choco can be the backbone of foodservice in the years to come. Their software already shows impressive levels of user engagement and true value creation for customers.”