Ordermentum has announced a successful $6 million funding round, led by existing Chairman David Gordon, SEEK co-founder Matt Rockman and PURE Asset Management.
The investment in the ordering and payments platform comes as Ordermentum experiences significant revenue growth, processing nearly $700 million in orders over the past year as hospitality undergoes a digital transformation that is shaping the future of the industry. Currently, more than 28,000 Australian hospitality venues and suppliers use the platform.
Additional existing investors backing the round include Pocketbook founder and former Zip Co executive Bosco Tan, who has joined the boar as Growth Advisor. Rockman will also join the Ordermentum board.
The investment was a secondary funding round and was significantly oversubscribed.
Amid the pandemic, the hospitality industry has increasingly moved to digital tools to better handle their inventory orders, improve cash flow and increase profit margins. Ordermentum has worked closely with venues and suppliers impacted significantly by lockdowns and restrictions, helping them digitise their processes, improve touchless ordering, and ensure they can minimise waste due to restrictions implemented at short notice.
These digital tools have meant hospitality venues can become more flexible and adaptable to restrictions. Aggregated data from Ordermentum’s platform shows that while the third Melbourne lockdown in early 2021 saw up to a 70% decrease in orders compared to the norm, subsequent restrictions placed in Melbourne and Sydney have seen this shift narrow to 25% on average.
Ordermentum founder and CEO Adam Theobald (above) said: “As the first point of contact between venues and suppliers, we’ve been in a unique position to see first-hand the impact the pandemic has had on venues around Australia through their ordering behaviours. The most recent round of restrictions paints a gloomy picture, and while we’ve unfortunately seen many businesses shut their doors during this period, we’re encouraged by how quickly the industry has bounced back following previous lockdowns.
“Venues and suppliers have embraced fresh approaches to how they manage their business relationships. We want to see them return to normality as soon as the health advice allows, but in the meantime we’re working closely with all of our venues and suppliers to ensure they weather this storm as best as possible.
“We’re preparing for the next phase of growth for Ordermentum to help venues and suppliers connect, recover and work better together. I’m excited to have the expertise of Matt Rockman, who has founded and scaled businesses across Australia, to help us reach that goal.”
Matt Rockman added: “Digitisation has changed the hospitality industry for the better, and Ordermentum is at the forefront of helping venues around the country become more adaptable and flexible in a tumultuous time. The company’s growth opportunity is amazing and while we are in a tumultuous time for the industry, it’s clear that the path to recovery involves rethinking how we manage our cafés, bars and restaurants. Ordermentum’s platform, industry expertise and deep connections will be vital ingredients to that recovery and I’m excited to help them on that journey.”
Nick Berry at PURE Asset Management concluded: “We initially invested in Ordermentum because we saw the major growth opportunity for the company and its leadership in the hospitality industry. Over the past six months, we’ve seen the ability of Adam and the team to over-deliver on their forecasts despite the backdrop, and create the foundations for an incredibly successful business in the years to come. We’re excited to re-invest and increase our support for Ordermentum to maximise on that opportunity.”