As the pandemic caused a significant shift in consumer behavior, independent restaurants and shops without online ordering systems faced immense challenges to maintain operations. To address these setbacks, Odeko stepped in, offering supply chain management solutions and other operational tools tailored for independent coffee shops and cafés. Their smart operations software enables customers to manage inventory, access data insights, and order equipment and consumables from more than 400 vendors, all while cutting costs and minimizing their carbon footprint.
Odeko CEO Dane Atkinson shared with TechCrunch that the hospitality industry has had a rough time in recent years, particularly due to the supply chain crisis. The company's primary focus was ensuring the availability of cups, lids, and other essentials for its clients while finding ways to mitigate the impact of rising costs on everyday items like milk and eggs.
Established in 2019 by Atkinson, Odeko now serves over 10,000 small businesses and boasts a year-over-year revenue growth of over 300%. By leveraging Odeko's capabilities, customers can save up to 21% on the cost of goods and reclaim up to 10 hours per week spent on managing vendors. The company is active in 16 local markets, with recent expansions to Miami, Portland, and Dallas. Furthermore, Odeko is available nation-wide through e-commerce and other innovative solutions.
In response to the company's successes, Odeko recently raised $53 million in a Series D financing round, led by existing investor B Capital. This latest round brings the company's total equity investments to $177 million, including a $12 million Series A in 2020. Other participants in the Series D included GGV Capital, Tiger Global Management, Amex Ventures, KSV Global, and FJ Labs. Odeko's valuation increased by 25% compared to its previous round of $77 million in Series C capital announced in 2022.
Atkinson plans to use the newly raised capital to invest in technology development, scale operations, and expand into new markets. He said the past year has demonstrated the efficacy of Odeko's business model and laid a solid foundation, making it the perfect time to broaden the scope.
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