Mosaic Solutions, a Philippine-based tech startup that provides profit optimization solutions for the hospitality industry, has announced it has raised P74 million in Pre-Series A seed funding.
With the funds, Mosaic said it will seek to further enhance its software, which provides restaurants and off-premise food retailers a comprehensive and immediate view of their key cost and revenue drivers to help make data-driven decisions, as they focus on bouncing back during this post-quarantine recovery period.
“Our cloud-based solutions provide our customers with the information they desperately need right now — real-time, holistic data analytics, reporting and business insights, seen at the outlet and brand level,” said Mosaic Solutions CEO Brett Doyle.
The solutions include data analytics, inventory management, point of sale, and purchasing — which are offered primarily to the food and beverage sector across Southeast Asia. This market includes multi-unit restaurant and bar groups, cloud kitchens, hotels and casinos, and retailers such as supermarkets and convenience stores.
“Mosaic is first and foremost a solution provider for restaurants, but we made a shift in focus early in the Covid pandemic to include off-premise food retailers, signing our first off-premise retailer in March,” said Doyle. “We saw an opportunity to help this underserved sector and diversify our customer portfolio by adding a lockdown-resistant, high growth sector.”
The startup said its solutions will save money for F&B owners and help operators get a handle on their cash flow levers to improve their bottom line. Whether from a reduction in waste, optimized menu engineering or more efficient labor management, Mosaic’s solutions can help restaurants save money and maximize cash flow. The software runs in the background to provide the data and insights needed to help managers make better decisions and drive increased profits.
“Many restaurants are seeing their business models changed with increased takeout and delivery, reduction of dine-in and challenges in supply chain. They urgently need to analyze what changes they can make to their menus, their staff and their operations; that’s where Mosaic comes in,” Doyle said.
Since launching in 2016, the company has raised over P153 million from investors in the United States, Australia, New Zealand, the Philippines, Malaysia and Singapore. Funding for the latest equity round was led by Investible, an Australia early-stage venture capital firm.
Other investors include local accelerator IdeaSpace, the KMC Founders Fund, JC Capital International (representing investors across SE Asia, including Malaysia and Singapore), high net worth individuals, family offices and strategic investors, including RCGI.
Mosaic sells products using a Software as a Service (SaaS) model – a cost-effective monthly subscription further helps clients optimize cash flow by avoiding large upfront costs typical for some other software providers. Given this SaaS model, Mosaic also benefits from a highly recurring revenue model.
Mosaic grew its customer base (measured as number of outlets) at an annual rate of 300% from 2016 to 2019. Further, with its expansion into off-premise, Mosaic more than tripled its footprint during 1H 2020. Currently, Mosaic services over 100 customers, representing approximately 1,000 outlets, across the Philippines, Singapore, Vietnam, India, and the UAE.
The startup said it sees great potential in the hospitality sector in the Philippines, which averaged 5 billion food and beverage transactions in the past year and is a big driver of overall consumer spending in the country.
In fact, the F&B sector across Southeast Asia is growing quickly, with on-premise F&B spending projected to double to $5 billion by 2022, and the total F&B market projected to grow to over $125 billion by 2023.
Besides seeking further growth in the Philippines market, Mosaic also said in plans will include regional expansion.