Oversubscribed Round Led by Schooner and Follow-on Commitment from Existing Investors
Leading restaurant management platform, MarginEdge announced that it closed an oversubscribed, $18 million Series B investment to expand their exponential growth. Schooner Capital led the round with follow-on investments from all major and strategic investors to-date, including Osage Venture Partners, Gordon Food Service’s innovation arm Relish Works and Nigel Morris.
The pandemic accelerated tech adoption across the industry as restaurant operators were faced with a rapidly changing marketplace, labor shortages and a disrupted supply chain. Putting best-in-class tools and technology in the hands of restaurant owners has always been central to the MarginEdge mission – and as operators increasingly rely on technology to help navigate difficult terrain, MarginEdge has emerged a clear leader.
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Bo Davis, CEO and Co-Founder says, “As a restaurant owner myself, the goal with MarginEdge has always been simple – to help operators succeed – and this was never truer than through the insanity of the pandemic. We feel deeply privileged to partner with operators across the country to help them run their business more efficiently and profitably. This funding will allow us to reach more restaurateurs, enhance our platform and exponentially grow our impact within the industry that so many of our team call home.”
For the past six years MarginEdge focused on arming restaurant operators with technology to empower their businesses. The digitization of historically time-consuming back-office paperwork practices and real-time data have helped restaurateurs manage their business more profitably.
As a testament to their product and impact, MarginEdge recovered to pre-pandemic growth in September of 2020 and is on track to end 2021 with over 200% growth year-over-year. With well over 3 million invoices processed and $4 billion in annual sales from their clients, MarginEdge continues to make their mark in the restaurant tech space.
Their rapid growth and resiliency through the pandemic and the subsequent enthusiasm for this oversubscribed round serve as strong signals of MarginEdge’s position and service in the industry.
Orhan Gazelle, Principal at Schooner Capital shared, “What struck our team about MarginEdge was not just their rapid growth and market position, but the deeply held culture of service to the industry. Everything they do comes from an authentic, service-driven mindset which has created a product that is an honest and empathetic response to the needs of their customers.”
Aside from Schooner who led the round, this funding is composed completely of enthusiastic repeat investors, bringing MarginEdge’s funding to date to over $35 million. Today, MarginEdge services over 2,400 independent restaurants in 47 states with a team of over 300 people in five countries and 29 states.
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