MarginEdge just secured $80 million in Series D funding. This capital injection for the Arlington-based restaurant operations firm comes at a time when software-as-a-service investment has slowed across the broader tech market.
Founded in 2015 by Bo Davis, the company builds tools to automate invoice processing, inventory management, and payment systems for restaurants. Their platform connects with existing accounting software and point-of-sale systems to track food costs and streamline kitchen operations. By replacing manual paperwork with automated data entry, the company helps operators gain visibility into their profit margins and inventory levels.
The new funding includes a combination of debt and equity. It was led by Schooner Capital and Penco Capital, with participation from existing investors Osage Venture Partners, Derive Ventures, and Western Alliance Bank. The company plans to use this investment to scale its sales and marketing efforts while increasing research and development for new software features.
Despite the rise of automated software creation, MarginEdge maintains a human-in-the-loop strategy to ensure data accuracy. The company employs 900 staff members, including 600 people in India and Bangladesh who verify the information extracted from the 300,000 invoices processed on the platform every week. This focus on accuracy supports large restaurant chains like Cava and Maman.
The firm is currently preparing to release new tools such as Smart Prep, which uses historical sales data to predict kitchen requirements. These updates aim to reduce food waste and help staff manage daily tasks more efficiently. As the restaurant industry continues to adopt more digital tools, this funding confirms the ongoing demand for specialized operational technology that addresses the realities of daily kitchen work.