Restaurant delivery software startup Loop raises $6M

Restaurant delivery software startup Loop raises $6M

Loop, a startup helping to make third-party delivery more profitable for restaurants, raised $6 million in seed funding, the company tells Axios exclusively.

Why it matters: Third-party delivery continues to increase its share of restaurant revenue, but fees and commissions can account for 15% to 30% of sales.

  • Restaurants also have to deal with chargebacks and order inaccuracies, which affect 3-4% of all sales from third-party marketplaces.

The big picture: “Restaurants are in a place where they have to look at this revenue stream sustainably and profitably, and they can’t do a patchwork of solutions,” Loop founder and CEO Anand Tumuluru says.

  • But restaurant POS systems and ERP systems don’t account for the costs and complexity of third-party delivery services.

How it works: Loop’s platform provides tools for restaurants to manage financial reconciliation and bookkeeping across multiple third-party delivery services.

  • It tracks chargebacks and order inaccuracies while helping restaurant brands keep their stores up on those services on different delivery marketplaces.
  • Loop also provides an issue discovery module store managers can use to pinpoint poor performance or quality control problems.
  • The company charges a monthly SaaS fee to customers based on their third-party order volume.