Mosaic Solutions, a Philippines-based tech startup that provides profit optimization solutions for the hospitality industry, announces its successful raise of PHP 74MM in Pre-Series A preferred equity and convertible debt.
With these funds, Mosaic will 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,” says Brett Doyle, CEO.
The Mosaic Solutions include data analytics, inventory management, point of sale, and purchasing — which are offered primarily to the food and beverage sector across SE Asia. This includes multi-unit restaurant and bar groups, cloud kitchens, hotels and casinos, and now 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,” shares Doyle. “We saw an opportunity to help this underserved sector and diversify our customer portfolio by adding a lockdown-resistant, high growth sector.”
With quarantine rules putting restaurants in a state of decreased sales and operations, everyone is concerned about cash flow. Using Mosaic’s products 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.
Doyle explains, “Many restaurants are seeing their business models changed with increased takeout and delivery, reduction of dine-in and challenges in the 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.”
Since launching in 2016, the company has raised over PHP 153 million from investors in the United States, Australia, New Zealand, the Philippines, Malaysia, and Singapore. Funding for this equity round was led by Investible, an Australia early-stage venture capital firm, that provides founders with the financial, human, and intellectual capital they need to scale.
Other investors include IdeaSpace (a non-profit running an accelerator and support programs for tech startups in the Philippines), 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 has shown itself to be a critical force in helping restaurants survive the pandemic, taking a data-driven approach to guide entrepreneurs and restaurant owners and help them make smarter decisions,” shared IdeaSpace President Butch Meily. “Mosaic is helping restaurant owners transition to a new way of doing business, and we believe that they can continue to find success even during these challenging times.”
“As customers of Mosaic Solutions, we immediately recognized the benefits its offering could have on the entire hospitality industry in the Philippines and throughout Southeast Asia,” states Diego Lorenzo, Director of RCGI. “We believe so strongly in what Mosaic is doing, we also made the decision to become strategic investors to help further fund product development and business expansion.”
Mosaic sells products using a Software as a Service (SaaS) model – this 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 UAE, with a primary focus on the Philippines.
Mosaic sees a great opportunity in the hospitality sector here 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 SE Asia is growing quickly, with on-premise F&B spending projected to double to USD 5 billion by 2022, and the total F&B market projected to grow to over USD 125 billion by 2023.
Mosaic will take advantage of these growth dynamics with continued product enhancements and business developments. Mosaic will further strengthen its efforts to support off-premise food retailers while continuing to delight its core restaurant customers.
Besides seeking further growth in the Philippines market, the next steps for Mosaic will include regional expansion supported by a Series A capital raise presently planned for 2021.
Mosaic Solutions spearheaded the Dine To Unite initiative to help Filipino restaurants fight the COVID 19 pandemic.
Another service utilizing modern digital capabilities to help the food and beverage industry is OneSTore City, a DOST-produced app where users can easily order their favorite Pinoy goods while supporting small businesses.
SEND CONGRATULATIONS in the comments below to Mosaic Solutions for raising 74M to help the food and beverage industry in post-COVID lockdown recovery.
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