Melbourne-based mobile ordering and payments platform Mr Yum has announced a significant $65 million Series A funding round, spearheaded by Tiger Global. This substantial investment underscores the growing demand for digital solutions in the hospitality sector, accelerated by the pandemic. The company aims to revolutionize the restaurant experience, offering a comprehensive platform that enhances customer ordering and streamlines operations for businesses.
Key Takeaways
- Mr Yum, a mobile ordering and payments platform founded in 2018, has raised $65 million in a Series A round led by Tiger Global.
- The funding brings Mr Yum’s total raised to $74 million, with previous investors including TEN13 and AirTree participating.
- The company plans to use the funds to expand its operations and further develop its platform, aiming to become the "Shopify for restaurants."
A Major Funding Round
Mr Yum’s $65 million Series A round, led by prominent venture capital firm Tiger Global, marks a significant milestone for the Australian startup. The funding round also saw participation from other notable investors, including Commerce VC, VU Venture Partners, Atlassian co-founder Scott Farquhar and Kim Jackson through Skip Capital, San Antonio Spurs player Patty Mills, and the music group Rüfüs Du Sol. This investment follows a $8 million post-seed round raised just seven months prior, bringing Mr Yum’s total funding to approximately $103 million AUD ($74 million USD).
Global Expansion and Platform Growth
Founded in Melbourne, Mr Yum has rapidly expanded its reach, now operating offices across Australia, the United States, and the United Kingdom. The platform boasts over 1,500 venues on its system, including restaurants, shopping centers, movie theaters, and airports, serving 13 million users. The company’s workforce has also seen substantial growth, expanding from 12 to over 120 full-time employees in just 18 months. This funding is expected to fuel further international expansion and product development.
Revolutionizing the Dining Experience
Mr Yum’s core mission is to "build ‘the Shopify for restaurants.’" The platform was initially conceived to address the static nature of traditional menus, offering a visual and interactive experience for customers. By incorporating high-quality images of dishes, Mr Yum aims to enhance the ordering process and increase average order values, which have reportedly risen by 20% to 40% for restaurants using the platform. The company also offers features like mobile QR ordering, which eliminates administrative burdens for staff, and integrates with various point-of-sale, marketing, and payment providers.
Strategic Vision and Future Outlook
Co-founder and CEO Kim Teo highlighted the strategic decision to invest heavily in QR code technology early on, anticipating its widespread adoption. The pandemic has significantly accelerated this trend, making QR code ordering commonplace. Mr Yum differentiates itself through extensive integrations with third-party services and innovative features such as Group Tabs and Advanced Batching. The company’s low monthly merchant churn rate of less than 0.5% and its focus on product innovation position it for continued success in the rapidly evolving digital dining landscape.