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Choco's funding helps it reduce restaurant food waste

Two men, one in an orange shirt the other in a red shirt, sort through a shipping container full of water melons.

Traders at a fruit market. Photo: Habibur Rahman Eyepix Group/Future Publishing via Getty Images

Choco, a software provider that helps the hospitality industry cut back on food waste, said it raised a $111 million Series B2 led by G Squared and Insight Partners.

  • The round confers unicorn status at a $1.2 billion valuation.

Why it matters: The deal shows that investors see green in brown gunk and related scraps in the kitchen dumpster.

Of note: While chefs are effective at keeping food waste to a minimum, a majority of waste occurs before it reaches the restaurant, CEO Daniel Khachab tells Axios.

How it works: Choco makes software that is designed to reduce errors and streamline supply chain issues.

  • The U.S. is the company's largest market. France and Germany are among the other countries it serves, and it's also expanding to Portugal.
  • The company is targeting hospitality or more specifically restaurants because the sector is highly fragmented compared to grocery.

Catch up fast: Six months ago Choco raised a $100 million Series B1. In all, the company has raised around $280 million, Khachab said.

By the numbers: The company said it achieved a gross merchandise volume run rate (the value of goods ordered annually via Choco's technology) of $1.2 billion in March.

  • Khachab said that company plans to triple its gross merchandise volume this year.
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