Scottish software-as-a-service start-up Spoonfed has today announced a second round of funding worth £585K from angel investment syndicate Equity Gap, private US and Channel Islands investors and the Scottish Investment Bank, the investment arm of Scottish Enterprise, to accelerate international growth and take the company into profitability.
Launched in 2013, Spoonfed has provided its end-to-end drop off catering software to customers throughout the UK including high-street chains, independent sandwich retailers and contract catering businesses and has also won contracts in USA, Canada and Australia.
To date, the technology has enabled clients to unlock new markets with automated business processing of office catering orders, in one case boosting monthly revenue from £7,000 to £70,000 and increasing average order values by 25 per cent.
The investment will be used to drive additional sales of the disruptive technology in the UK and internationally, further enhance its functionality, create new jobs and establish a foothold in the Far East and mainland Europe.
Managing Director of Spoonfed, Willie Biggart said: “The funding we received last year enabled us to gain traction in the marketplace and determine the strong industry need for this product.
“We’re excited about growing this business because we’ve seen amazing results from customers who have implemented the software into the everyday running of their company and have had very positive feedback about the efficiencies and growth it has brought.
“We’ve taken our time and made sure we have got this right so any business with an interest in corporate catering can easily use the software, giving them more time to focus on what they do best and leaving the organisation to Spoonfed.”
Spoonfed was born from an identified need by founders Willie Biggart and Murray McNicol who owned and operated a catering business delivering meeting room food to offices. They developed the software to automate processes to save time, reduce mistakes and increase margins.
Jock Millican of Equity Gap comments: “It was clear the founders of Spoonfed had spotted a clear gap in the market and have developed a product that is already proving popular worldwide. The founders’ experience in the industry has led to a product that directly resolves a need and their relentless work to iron out any kinks has produced a business that is financially in good shape within a very short period of time.”
Head of the Scottish Investment Bank, Kerry Sharp said, “Spoonfed is a great example of a growing Scottish technology company bringing innovative digital technology to the catering industry. We are pleased to be able to support Spoonfed as it expands its international reach in a market ready for technological enhancement and efficiency.”
Spoonfed is a cloud-based system for single and multi-site catering management used for online ordering, production planning, route planning, invoicing, email marketing and bringing together these logistics in one integrated solution.
Equity Gap is a business angel syndicate, actively investing and co-investing in early stage Scottish-based companies.