Investing in Loop

Delivery Intelligence for OnDemand Commerce

In the recent years, the restaurant industry has witnessed a significant shift towards leveraging third-party delivery apps such as Uber Eats, Doordash, Grubhub, and others to expand their customer reach and boost revenue. While these platforms offer undeniable benefits, they also introduce a myriad of financial complexities for restaurants.

Traditionally, the profit and loss (P&L) statement for restaurants follows a well-established framework, with clear benchmarks for food and labor costs, rent, utilities, and other expenses. However, third-party delivery introduces a new layer of complexity. With commissions often as high as 30%, along with credit card fees, chargebacks, packaging, and labor costs, reconciling these expenses against a restaurant’s own books can be a daunting task. The issue of sales tax responsibility further complicates matters, varying not only by state but also by delivery service. This exacerbates the difficulty for restaurants with multiple locations, where reconciling up to 15 different line items from various delivery providers becomes a time-consuming and error-prone process. As more food chains continue to host their inventory on third-party delivery apps, they will need solution that proactively mitigates operational mistakes.

That’s why I’m excited to announce my investment into Loop.

Loop is designed to automate and streamline the reconciliation process, ensuring that restaurants receive the compensation they are rightfully owed by delivery providers. By consolidating third-party delivery sales into a single, real-time dashboard, Loop empowers operators to keep closer tabs on their omni-channel business, transcending the limitations of receiving payment summaries and deposits only every seven to ten days. Loop’s capabilities extend beyond financial management. Leveraging AI, Loop scans customer reviews and feedback to identify errors and issues that may impact the restaurant’s reputation and bottom line.

Loop currently serves over 100 brands, including renowned establishments such as Dave’s Hot Chicken, Pizza Hut, and McDonalds. Loop is poised to unlock delivery intelligence for OnDemand commerce. Loop was founded in 2022 and have grown incredibly fast. Anand, Sundar, and Vinod are no strangers to the food industry. They have run restaurants, built Flipkart's ($32B val) ERP system, and were engineers at Uber. Glad to have met and partnered with them on this vision.

Loop has raised an $6M Seed round led by Base10 Partners, with participation from Afore Capital.