Foodology has been whipping up its restaurant manufacturers in cloud and digital kitchens in Colombia and Mexico since 2019, and with a brand new infusion of capital, hopes to scale that throughout Latin America.
The Bogotá-based firm closed on $15 million in Series A funding in a spherical led by Andreessen Horowitz and Base Partners. Existing buyers Kayyak Ventures and Jaguar Ventures (now Wollef) joined in as did a gaggle of angel buyers, together with Instacart president Nilam Ganenthiran, Kavak CEO Carlos Garcia, Ualá CEO Pierpaolo Barbieri, former Burger King Chairman Dick Boyce and Merama CEO Sujay Tyle. Including the brand new funding, Foodology has raised greater than $20 million.
The firm was based by CEO Daniela Izquierdo and Juan Guillermo Azuero, who met in a restaurant trade course at Harvard Business School. Izquierdo instructed W3Techy that she is an enormous fan of cooking and needed to combine that keenness with a enterprise.
“It is a risky industry — people go broke, restaurants are closing down and it is capital-intensive to set it up, even a small shop,” she added. “We wanted to bring in technology and data to be more efficient and be prepared for a virtual world, which behind it is food delivery. Many restaurants did not change at all to serve the delivery customer.”
Azuero added that on the shopper aspect, meals supply is “usually just an OK experience, not a great experience” and infrequently the meals packaging just isn’t the most effective. Foodology is working to alter that, and so they say they’ve constructed a mannequin that permits it to quickly scale authentic and third-party restaurant manufacturers throughout Latin American markets inside weeks and ship meals in a approach that may delight clients.
Here’s the way it works: Foodology collects information on consumer preferences and cross-references that with close by meals choices in a geographical space to handle the end-to-end creation of authentic dishes with supply.
The firm usually has seven to 10 manufacturers being made in one kitchen and performs R&D on the best-sold dishes in order to create menus with its full staff of cooks, Izquierdo stated.
Foodology at the moment operates 20 kitchens in six cities throughout Colombia and 10 in Mexico and has 60 company workers and over 300 in its kitchens. In Colombia, it’s taking 100,000 orders per thirty days and simply handed a milestone of 1 million orders complete. Izquierdo goals to open one other six kitchens, in addition to use the brand new funding to enter the Brazilian and Peruvian markets subsequent yr.
Latin America’s food service industry was forecasted to generate $264 billion in 2020. To hold up, in addition to increasing the variety of kitchens, the corporate will use the brand new funding on product improvement because it grows 50% month in income, a tempo the founders see persevering with because it opens extra areas in Mexico and enters the brand new markets. Their objective is to help 500 kitchens in the long run, Azuero stated.
“There are tons of people looking to have virtual restaurants and brands, but very few have a model at scale in the region,” Izquierdo stated. “We are by far the biggest player doing it in LatAm.”