Yooga Restaurant Management Platform Secures $2.3 Million Funding

Published 6 months ago

Brazil-based restaurant management system, Yooga, has successfully raised $2.3 million in seed capital. The funding round was led by SaaSholic, with participation from Gilgamesh, Apex Partners, and Backfuture.

The Birth of Yooga

Yooga was co-founded in 2017 by Vinicius Melo, Victor Sortica, and Cassiano Guerra Fernandes. The company was bootstrapped for three years and managed to raise $300,000 in a friends-and-family round in 2020. The platform was inspired by Melo’s college experience waiting tables, leading him to create a system to automate restaurant operations.

Functionality and Vision

Yooga provides software to manage orders, send orders to the kitchen, control inventory and cash flow, and offer last-mile delivery. The co-founders aim to consolidate all these processes into one platform, stating that customers can be onboarded within a week and can see results in as little as two months.

The co-founders also revealed that they aspire for Yooga to be the “Toast of Latin America,” referring to the popular restaurant management platform, Toast.

Market Outlook

Despite the presence of Toast and other restaurant management platforms, the co-founders believe that there is no direct competition due to the fragmented market in Brazil. They highlighted that hundreds of companies serve hundreds of customers, with many still using paper and spreadsheets for management.

Currently, Yooga boasts over 6,000 clients and is growing. The company’s revenue primarily comes from monthly subscriptions starting from $35. The founders also revealed plans to add additional revenue streams from payments and professional services.

Financial Performance and Future Plans

Yooga handles $2 billion in transactions annually, with over 4 million orders processed through its platform per month. The company is growing in double digits monthly, and the recent investment puts its post-money valuation at $20 million.

The funding will be utilized to hire additional staff and invest in technological development. The co-founders plan to introduce new features like “tap on phone” and PIX payment solutions, which they expect will double the average revenue per user. Despite positive EBITDA in recent months, the company is keen to accelerate growth and further establish its presence in the market.