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Choco is assisting the foodservice business in regaining strength in a post-pandemic era by facilitating a significant transition toward digitization.
FREMONT, CA: Choco, the technology company building a connected global food system, has declared that it has raised $100 million in Series B funding. The round is led by New York-based growth equity firm Left Lane Capital, with participation from venture capital and private equity firm Insight Partners, as well as current investors Coatue Management and Bessemer Venture Partners. The fresh fundraising comes just over a year after Choco's $63.7 million Series A, bringing the company's total capital to $171.5 million in three years.
Choco is assisting the foodservice business in regaining strength in a post-pandemic era by facilitating a significant transition toward digitization. Choco has evolved into a must-have digital tool for hospitality companies, facilitating more efficient food procurement operations and lowering operational costs between restaurants and suppliers. The fundamental product of the company is a digital ordering workflow and communication platform for restaurants and suppliers to help with food procurement. Choco's platform currently includes over ten thousand active restaurants and suppliers across the US and Europe.
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Choco's objective is to make the food supply chain more transparent and sustainable in order to boost foodservice margins and prevent climate change. Food waste is the third-largest contributor to climate change and the single most significant cause of deforestation; as much as 40 percent of the world's food goes to waste before reaching a customer's plate due to numerous steps in the supply chain. Choco collaborates with food industry experts, suppliers, distributors, and restaurants to digitize the food supply chain, allowing for more effective food procurement methods and business success.
To operate successfully during the COVID-19 epidemic, the food sector, which has typically been sluggish to accept new technology and is still primarily operated on paper, was obliged to undertake a fast pivot. As a result, Choco has experienced increased demand for its service, with platform transaction volume quadrupling in the previous year and expected to accelerate further as more cities emerge from stringent lockdowns and restaurants rebuild their on-premise operations.
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