Notch, a software provider to the $390B dollar wholesale foodservice industry, has raised $10M USD. The investment was led by Portage, with participation from Golden Ventures, Math Ventures, Accomplice, Pre-Cursor Ventures, Garage Capital and Plexo Capital.
Notch, previously Chefhero, was founded as a marketplace between restaurants and wholesale distributors. The Covid-19 pandemic provided the company with clarity on the most pressing market needs. Notch re-branded as a software solution to help restaurants digitize their back of house operations. To coincide with this new round of financing, Notch is releasing new offerings to provide a unified solution amidst the landscape of fragmented hospitality solutions. Notch is ideally suited to support the hospitality industry in the post Covid landscape.
In Q1 of 2023, Notch will be releasing its AP manager solution to help restaurants move all of their supply chain payments online. Restaurants across North America can move off of cash and cheque, and seamlessly pay their vendors through the Notch platform.
In late 2022, Notch rolled out an Accounts Receivable solution for wholesale distributors. Notch's solution automates collections, and brings payments online for distributors across North America. The company has seen an 800% year over year growth with this new product.
As a part of this round, the company also underwent a restructuring of the team, and hired new heads of marketing, operations, and sales to focus on its new product offerings. As part of the financing, Ricky Lai, Partner at Portage, will be joining the Board of Directors at Notch.
"Notch brings simplicity and speed to the back office operations for an industry historically encumbered with lots of manual reconciliations, paper documents, and mismatches between operations and finance. We are super excited to partner with Jordan and his team on this journey," Lai said.
"It has not been an easy road for Notch, but I'm very proud of the resiliency of this team. We could not be more excited to be partnering with Portage for this next stage of growth at Notch. As our team continues to unlock digital payments and financial solutions for the foodservice industry, which has been predominantly offline, Portage's belief that B2B Commerce is coming online aligns perfectly with our own" said CEO Jordan Huck.
Notch will use this additional funding to ramp up the sales and marketing teams, and fuel geographic expansion for the company.