Founded in 2020, startup Allo aims to help restaurants with their digitalization. To do this, the Munich-based company offers restaurant owners a digital end-to-end operating system for their establishments. The solution is designed to help them make their operations more efficient and optimize their business processes. Ultimately, this should also increase their revenue. Currently, the startup serves more than 200 locations in Munich and more than 75 percent of Chinese restaurants in the city, according to its own information. Its growth is supported through partnerships with companies such as Google, Uber Eats, Wolt, Lieferando, Stripe, and PayPal.
Following its first funding round in late 2022, Allo has now convinced investors once again. In its second seed round, the startup raises €4.6 million (US$5 million). The oversubscribed round is led by 20VC. Keen Venture Partners, the NL Startup Fund, 20Growth, and 20Product also participate. In addition, renowned angel investors such as Stripe COO Claire Hughes-Johnson, Martin Enderle, CEO of Delivery Hero, and professional footballer Mario Götze are involved.
Strong growth for Allo
Last year, Allo recorded a 10-fold growth in annual recurring revenue (ARR) and a 4-fold growth in average revenue per user (ARPU), according to its own figures. With the funds now raised, this growth is to be strengthened and the offering expanded to additional cities in Germany and Europe.
In a statement to tech.eu, Cancan Liu, CEO and co-founder of Allo, explains:
“We are on a mission to end operational chaos in small restaurants across Europe. Our solution enables restaurant owners to focus on what they do best – providing their guests with a great experience.”
Harry Stebbings, general partner at 20VC, comments:
“Restaurant software in Europe is broken. Restaurants have to juggle up to ten different software products that are fragmented, don’t communicate with each other, and severely impair restaurant owners’ productivity and profitability. When we first met the Allo team, it was immediately clear that their fully integrated solution was developed together with their customers and for their customers. There is a real opportunity to gain market share in the point-of-sale space in Europe, and by far this is the most compelling team seizing this opportunity.”
