Washington, D.C.-area restaurant technology startup MarginEdge Co. has raised $45 million in a Series C funding round and said it intends to use proceeds to invest in its platform and scale the company.
The round was led by Darien, Connecticut-based Ten Coves Capital, with participation from Brookfield-based payments provider Fiserv Inc. (Nasdaq: FISV), San Francisco’s Derive Ventures and all of its previous institutional investors, which include Schooner Capital of Boston, Osage Venture Partners and Relish Works, the venture arm of Gordon's Food Service.
MarginEdge has developed software that allows restaurants to manage things like invoice processing, inventory management, recipe tracking, budgeting, performance tracking and bill payments in one place. It also gathers data and insights, which it delivers to customers to help drive restaurant profitability and efficiency.
Wednesday’s announcement follows an $18 million Series B raise in September 2021 and a $4 million raise in November of 2020 — a significant investment given that it was the height of the Covid-19 pandemic and many restaurants were struggling to stay afloat. The latest raise brings the company’s total funding to date to more than $70 million, according to MarginEdge.
With the funding, MarginEdge plans to further grow its team — which totals 450 globally and 80 locally — and to keep “broadening the functionality of core product offerings,” it said in a press release Wednesday.
The 7-year-old company plans to move into new 23,500-square-foot offices atop Ballston Quarter mall in Arlington, Virginia, by the end of this year, more than doubling its footprint from its current headquarters in Merrifield, Virginia.
MarginEdge has restaurant clients throughout the country who pay a flat monthly fee for its service.
Under co-founder and CEO Bo Davis, who started MarginEdge after a decade working in the restaurant industry, the company's subscription business grew by 50% in 2020 and another 140% in 2021. In an interview with the Washington Business Journal in July, Davis said the company is on track to generate $15 million in revenue this year, up from $7 million last year and $3.5 million in 2020.
He said the company is not yet profitable, because it is still “investing substantially in growth.”
MarginEdge is a 2022 DC Inno Fire Awards honoree.
