Pepper, the end-to-end technology platform for independent food distributors, announced it has raised $50 million in Series C funding to expand product innovation, deepen AI-enabled capabilities, and accelerate adoption across the independent food distribution ecosystem. The round was led by Lead Edge Capital, with participation from existing investors including ICONIQ, Index Ventures, Greylock, Harmony Partners, and Interplay.
Pepper’s suite of products helps independent food distributors grow revenue and boost productivity by modernizing core workflows across ordering, sales and marketing, accounts receivable, and embedded payments. The company serves more than 500 distributors, representing approximately $30 billion in annual gross merchandise volume, and supports over 100,000 active operators nationwide.
“Food distribution is one of the largest and most fundamental markets in the world, yet it has long operated on manual systems and fragmented technology,” said Bowie Cheung, CEO of Pepper. “This newest round of funding enables us to build the next generation of platform capabilities our customers rely on to run every critical part of their business, from ordering workflows to sales productivity and payments capabilities. Independent distributors can no longer survive on legacy technology, and our product suite gives these business owners the same technological advantage that has historically been reserved for food industry giants.”
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Driving Scale and Impact Across Legacy Workflows
Independent distributors account for more than two-thirds of food distribution in North America, representing over $1.4 trillion in annual sales, yet much of the industry continues to operate as a highly fragmented market and relies on manual and analog systems. Pepper’s platform bridges that gap with broad product depth and workflow automation built for the unique needs of distribution, including 70+ ERP integrations that link legacy systems into a unified, digital operating stack.
As the industry faces ongoing consolidation and competitive pressure from the largest distributors, Pepper’s open platform approach gives independents the tools to win market share and compete more effectively in a rapidly evolving landscape.
“Our partnership with Pepper builds on Lead Edge Capital’s experience backing category-defining technology platforms in fragmented, high-potential markets,” said Aaron Darr, Principal at Lead Edge Capital. “Independent food distributors operate at enormous scale but remain siloed. Pepper provides the shared technology infrastructure that brings that market together.”
“Pepper has fundamentally changed how we operate day to day,” said Jackie Oakes, Director of Marketing at Flanagan Foodservice. “Their platform gives our team clarity and speed we didn’t have before, and it’s become a critical part of how we serve our customers at scale.”
“Pepper is building software for the future of food distribution – software we can put to work today,” said Brian Handley, President at Palmer Food Services. “As the industry evolves, their platform lets us invest confidently in long-term technology while continuing to deliver on our near-term goals.”
SOURCE: Businesswire