Upstock.App Raises $3.5 Million, Expands In NZ Hospo Sector
Upstock, an online ordering app for hospitality businesses, has raised $3.5 million in its first capital raise as it expands across New Zealand.
Upstock is used by restaurants, bars, cafes, and their suppliers. Started by Matt Watson of Foxton Fizz, and developed by Philip Fierlinger (Co-Founder of Xero) and Duncan Ritchie (Former CPO of Xero), it reduces ordering errors to almost 0%, minimises waste and gives time back to busy hospitality businesses.
Every day new customers across New Zealand are signing up to Upstock and joining a long and growing list of major brands like Mojo Coffee, Six Barrel Soda Co., Best Ugly Bagel, Chow, WBC, and Pomeroy’s Coffee. Any retailer can use the app to order from any of their existing supplier.
Upstock embarked on its capital raise during the initial wave of Covid-19 and the Level 4 Lockdown in March/April 2020. Philip Fierlinger, Co-CEO of Upstock, says despite the uncertainty of Covid-19, the raise was vastly oversubscribed and eventually was capped at $3.5 million.
“Immediately, there was interest in what we’ve created. In the hospitality sector margins are slim, so every dollar counts. We reduce errors to almost 0%, saving money and reducing food waste – which is a huge problem in the sector.
“Our investors immediately saw the power of Upstock as a marketplace platform – they could see it’s inevitable that software will replace pen and paper. That became even more obvious when Covid-19 hit and hospitality started rapidly adopting online tech,” says Philip Fierlinger.
For big national operations with multiple outlets, like Mojo Coffee, Upstock has been transformational. Mojo uses Upstock to coordinate orders between their roastery, bakery and 35 cafes in New Zealand and the US. Katy Ellis, General Manager of Mojo, says they now can’t live without it.
“Upstock has made things run smoother and faster in our cafes and our HQ operation. It’s given us control and visibility over what stock is being ordered across our entire operation, and we spend a tiny fraction of the time we used to managing orders. It’s been a game-changer for us,” says Katy Ellis.
Streamlining operations in today’s climate is crucial for suppliers, both large and small. Joe Slater, the Co-Founder of Six Barrel Soda, was one of Upstock’s early adopters. He says using the app has significantly simplified their business.
“Upstock has helped us streamline both our customer on-boarding and ordering processes massively, as well as making our order entry and dispatch much simpler. We’ve thrown out the ring binder full of scribbled orders and moved into the future” says Joe Slater
Matt Watson, Founder of Upstock, says the hospitality sector acutely understands the importance of robust online systems as they’ve navigated Covid-19 in 2020. It’s also an issue he understands well as a supplier through Foxton Fizz.
“Any steps businesses can take to reduce costs are crucial when they’re working so hard to keep the doors open during these turbulent times. We’re working closely with all of our customers – helping them create more sustainable businesses, and maintain New Zealand’s extraordinary and vibrant hospitality sector,” says Matt Watson.
Designed and built by the founders of Xero, Upstock is a wholesale ordering app used by New Zealand’s top restaurants, bars, cafes and their suppliers. Customers include Six Barrel Soda, Mojo, Best Ugly Bagels, Chow, Pomeroy’s and many more.
Upstock is designed to be extremely easy, accurate and fast to use – providing a smart ordering solution for the hospitality sector. It reduces errors to almost 0% and minimises waste - enabling hospitality businesses to cut costs while they focus on creating amazing products and experiences for their customers.
Investors include Icehouse Ventures (Upstock marked their 200th investment milestone), along with startup founders from Xero, Campaign Monitor, Pepperstone, and others.