Berlin-based startup, Choco which has been optimizing the food supply chain between restaurants and suppliers, has announced it raised $30.2 million. This round of funding has doubled the company's valuation to $250 million. The financing also comes just six months after Choco closed on a $33.5 million Series A round led by Bessemer Venture Partners.
"The food and restaurant industry produces the most essential good in the world, but still relies heavily on pen and paper. Our vision to digitalize this industry for a more sustainable future requires immense coordination and funding. We are at a time of global crisis where our industry needs the help – and the digital tools – to keep businesses running," said Daniel Khachab, founder and CEO.
With its new round of funding, Choco plans to get started on a new initiative set to help the food industry as it struggles to cope with the coronavirus pandemic. The company is launching a direct-to-customer program to facilitate the delivery of "restaurant quality" produce from wholesale suppliers to people at home. In its regular operations, the company connects food suppliers with restaurants.
The e-commerce site will be launched across all 17 regions it operates in, across eight countries: Germany, France, Spain, the Netherlands, Austria, Belgium, Brazil, and the United States. Choco has also pledged that as long as restaurants remain closed, it will donate all of the profits from this initiative to regional restaurant funds.
Choco Market, a subsidiary of the brand operating in New York is donating 100% of its profits during the crisis to ROAR (Relief Opportunities for All Restaurants) and the Robin Hood Foundation, which will all go to out of work restaurant staff.
While the hospitality industry has been hit hard by the crisis, Khachab is optimistic that things will come back strong once this is all over.
"Restaurants after the crisis will likely be much more innovative and robust businesses," he said. "On the consumer side, people will start coming back to restaurants; it's about the social experience, the social gathering and about experiencing this real form of art produced by chefs that have so much passion. Food is also one of the most important and beautiful ways to perceive and communicate culture — it needs no language."
