Sydney B2B startup Ordermentum, which helps suppliers and retailers in the food and beverage space manage orders, has raised $2.5 million in a Series A round led by Capital Markets Technology, with participation from investors including Nudie Juices and ShippingEasy cofounder, David Gordon and former managing director of eBay Australia, Alison Deans.
Founded by Andrew Low, formerly managing director of Toby’s Estate Coffee, and Adam Theobald, cofounder of coffee ordering app Beat the Q (now Hey You), in 2014, Ordermentum is a centralised platform that allows retailers to place orders from their dozens suppliers, while suppliers can manage all their retail customers, their product ranges, and accept orders and payment in one place.
There are already over 3,000 businesses using the platform across Australia, with the likes of alcohol distributor Lion and Luxe Bread on board, but the opportunity for growth is huge: there are more than 60,000 cafes, bars, and restaurants placing over 60 million supply orders every year worth $30 billion in Australia alone.
Low said, “Until now there has been no single solution that significantly improves these manual tasks for both parties. I am excited that Ordermentum is delivering business efficiencies, growing sales and improving relationships for both sides of the food and beverage network.”
Theobald said the potential in the market was reflected by the interest shown by investors.
“It was very humbling for us to receive such a positive response from Australia’s best tech investors during our fundraising process. The Ordermentum growth profile last year was staggering, and we are extremely excited to build a fantastic team around the response we are receiving from the market,” he said.
He added that it’s “a simple equation” for the startup from here, with the guidance of the startup’s board and advisors to help Ordermentum grow over the next 12 months.
Joining the board in line with the capital raise is Gordon, who said, “For a long time now consumer products have taken the limelight when it comes to innovation and investment over business to business opportunities. I love business solutions that address real world problems in a substantial market. Ordermentum is a great example of exactly this.”
The reference to consumer products is an interesting point, with Australia’s foodtech space starting to consolidate after exploding with new consumer startups last year. It can be said that many of these, however, are focused on solving minor inconveniences rather than substantial or real world problems (a distinction that is not often made around the startup world).
Last month saw Grocery Butler merge with Rocket Internet-backed rival ShopWings, with the two grocery delivery companies operate under the ShopWings brand in Sydney, Melbourne, and Brisbane, serving 15,000 customers.
The company believes the opportunities in the market are huge, with IBISWorld putting yearly revenue in the supermarket and grocery industry at $88 billion, but as well as facing stiff competition from the supermarkets, which have their own online shopping, delivery, and pick up services, the new ShopWings will still face startup competition in the shape of YourGrocer.
Of course, then there are also the recipe box delivery services such as HelloFresh and Marley Spoon to contend with, while the likes of Deliveroo, Foodora, and Menulog are currently duking it out in the restaurant delivery space.
Image: Adam Theobald, David Gordon, Andrew Low. Source: Supplied.