An Arlington County-based restaurant software company closed an $80 million Series D round, nearly doubling its lifetime funding, according to a Tuesday announcement.
The company, MarginEdge, has now raised $162 million.
Boston-based Schooner Capital and Connecticut growth equity firm Ten Coves Capital led the round, with participation from existing investors Pennsylvania-based Osage Venture Partners, San Francisco’s Derive Ventures and Western Alliance Bank, headquartered in Arizona.
Founded in 2015, MarginEdge aims to simplify back office operations for restaurants by bringing purchasing, inventory, recipes, sales and accounting into one platform.
Since its founding, the company has processed more than 40 million invoices, representing about $28 billion in purchasing volume. It processes more than 10 million invoices annually for more than 10,000 restaurants across the U.S. and Canada.
With the latest funding, MarginEdge plans to expand practical AI built on restaurant data. The company will “expand product R&D, grow its sales and marketing efforts and accelerate its AI roadmap,” it said through a marketing and public relations firm, which will mean continuing to build out its platform and investing in teams and resources to support those efforts.
“Hospitality starts with people,” MarginEdge co-founder and CEO Bo Davis said in a statement. “Our job is to build technology that gives operators more time to focus on their guests. We’ve spent the last decade helping restaurants organize every part of their business — from purchasing and inventory to recipes, accounting and payments.
“Clean, trusted restaurant data is the heart of powerful AI,” he continued, “and now we can put it to work in ways that simply weren’t possible before.”
This year, MarginEdge has brought more AI into its platform, adding a built-in AI assistant that helps recommend what to order, flag potential waste, explain unexpected performance and suggest next steps. It also launched a Model Context Protocol interface that allows restaurant operators to securely connect their businesses’ data with AI platforms like ChatGPT and Claude.
The company is preparing to launch a predictive preparation tool, SmartPrep, later this year.
In addition to its Arlington headquarters, MarginEdge has an office in India and one in Bangladesh, and of its 1,000 employees, 800 are based overseas, primarily in those two countries. In Virginia, MarginEdge has 104 employees.
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Dining and Cooking