Saudi technology start-up Foodics raised $170 million in its latest funding round that will help the company boost its technology and expand into new markets.
The Series C funding round for Foodics was led by Sanabil Investments, the kingdom's Public Investment Fund-owned investment company, and Prosus, one of the largest global technology investors in the world.
Other investors included Sequoia Capital India and existing investors such as STV and Endeavor Catalyst.
This latest round will support Foodics' regional and international expansion, including its merger and acquisition strategy to increase the market penetration, the company said in a statement.
Foodics will use the proceeds to launch and scale new initiatives around FinTech, micro-lending and supply chain management. As part of its growth strategy, the start-up will also venture into non-food micro-retail outlets.
“Foodics has come a long way since our early days and we are proud to have been able to secure capital from premium international tech investors to further power our journey,” Ahmad Al Zaini, co-founder and chief executive of Foodics, said.
“This latest investment will enable us to accelerate the development of our end-to-end tech stack ecosystem to better support the F&B entrepreneurs and owners who make up the majority of our client community.”
Total funding secured by start-ups in the Middle East and North Africa rose 64 per cent in the first half of 2021 to $1.2 billion from a year earlier, figures compiled by data platform Magnitt show. Food and beverage, FinTech and e-commerce sectors had the most capital invested.
Foodics, which is focused on the retail and food and beverage segment, provides operating software to restaurant businesses.
It acquired Jordan’s POSRocket — the second-largest restaurant cloud services provider in Mena — in January for an undisclosed sum. The deal allowed it to consolidate its position and become the market leader in Egypt, Kuwait, Oman and Jordan, the Riyadh-based company said in January.
“We believe restaurant-tech is an exciting opportunity within the food ecosystem with significant growth potential … Foodics has already established a strong regional presence by leveraging its product vision, technical excellence and brand,” Fahd Beg, chief operating officer of Prosus Food, said.
Since its inception in 2014, Foodics has successfully processed more than five billion orders through its platform and is aiming at 150,000 terminals by the end of 2024.
It provides operating software to restaurant businesses and secured $20 million in venture funding in February last year to expand. The company's software manages customer orders, inventory, staff scheduling and other operational aspects of restaurants, cafes, food trucks, cloud kitchens and other businesses.
“We are excited to be part of the next phase of growth in enabling micro-retail businesses at the inter-section of digitisation and FinTech solutions. We look forward to supporting the company in realising its full potential and unlocking new markets,” a Sanabil Investments representative said.
