Australia’s largest wholesale online order management platform for the food and beverage industry has reached a milestone of $1 billion in gross merchandise value.

Sleeping hospitality tech giant Ordermentum has reached a whopping $1 billion in gross merchandise value, a figure propelled by the adoption of digital solutions during the COVID-19 pandemic.

34,000 Australian venues spanning cafes, bars, restaurants and pubs are now on the fully integrated tech system, with the platform also moving about half of all specialty coffee orders in Australia.

 

Tough climate, strong growth

Ordermentum chief executive and founder Adam Theobald said this period of strong growth could be attributed to the appeal of digital payments on the platform, which had increased by 153% in the last two years.

“The pandemic quickly accelerated the need for suppliers and hospitality businesses alike to stay atop of their payments,” said Mr Theobald.

“Bad debts are quickly becoming a thing of the past thanks to the platform’s facilitation of digital payments. Businesses have the option to charge upfront, getting rid of lengthy credit checks, or charge automatically according to the terms they set. Our clients have found it extremely useful through the uncertainty of the last two years.

“It’s been an absolute game changer for small businesses, going from a nice to have in our suite, to the core reason customers come to us.”

 

Fresh funds for fresh features

The company also recently completed a $6.2 million capital raise which was backed by key investors Pure Asset Management, Naos Asset Management, Matt Rockman (SEEK co-founder), David Gordon (Founder ShippingEasy) and Bosco Tan (Pocketbook co-founder).

The funds are being used for the company to continue expanding on its features (it recently released Chat, Spend Insights and One Click Customer Onboarding) and pursue its purpose to reinvigorate the food and beverage industry.

To date, Ordermentum has invested over $25 million into the Australian food and beverage industry.

“Our capital is helping us keep up with the demands of food and beverage operators looking to digitise their business. It took six years for us to process our first $1 billion in GMV, and now we are on track to generate $3 billion in GMV in the next 6 months,” said Adam.

“The momentum we are seeing right now is significant and with that comes new challenges.”

Ordermentum was established in 2014 and originally focused on coffee suppliers and bakers. Now the supply categories are expanding to perishable goods such as fruit and veg, meat, chicken, seafood, and also packaging.

“It’s now also not unusual to see 60-70% of new suppliers’ customers already using Ordermentum.

“The network effect of our brand is really kicking in, which is in line with our mission to become the number one Food and Beverage platform that helps businesses thrive by trading smarter. We really are just getting started,” said Mr Theobald.

 

This article was developed in collaboration with Ordermentum, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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