Independent cafes and small food businesses face immense challenges competing against global chains, from operational inefficiencies and limited technology to high costs and time-consuming vendor management. In today’s challenging economic landscape, these local establishments struggle to access the unified buying power and streamlined operations that larger competitors enjoy. Odeko powers thousands of local coffee shops, cafes, and food establishments with its all-in-one operations and technology platform. Through a comprehensive portal, customers purchase supplies from hundreds of national and local brands, track ordering trends, finance equipment, and now access specialized insurance solutions through the company’s acquisition of Butter Insurance. With more than 14,000 customers including regional favorites like Aroma Joe’s, Blank Street, and Van Leeuwen, Odeko’s platform helps independent businesses save an average of 10 hours per week on vendor management while reducing their cost of goods by 21%.
AlleyWatch sat down with Odeko CEO and Founder Dane Atkinson to learn more about the business, its future plans, recent funding round, and much, much more…
Who were your investors and how much did you raise?
We just raised a $126M Series E: $96M in equity led by B Capital and a $30M credit facility from Banc of California. This brings the total we’ve raised to more than $280M in equity.
Tell us about the product or service that Odeko offers.
Odeko is the all-in-one operation and technology partner for thousands of local coffee shops, cafes, and other food and beverage businesses.
What inspired the start of Odeko?
I’ve owned bars, restaurants, and coffee shops. They’re incredibly locked in an old model with limited technology. I started Odeko to ensure that independent food businesses have a platform that will support their growth and enable them to compete successfully alongside large global brands.
How is Odeko different?
We’re the only all-in-one operation and technology partner for thousands of local coffee shops, cafes, and more. We’re further cementing this by adding insurance to the portfolio of services we offer our partners through acquiring Butter Insurance. There is no direct competitor that does distribution and technology for the customers we serve.
What market does Odeko target and how big is it?
We have more than 14,000 customers, including local businesses who developed a regional or national presence, like Aroma Joe’s®, Birch, Blank Street, Go Get Em Tiger, Gregorys, Joe Coffee, Van Leeuwen, and White Rhino.
We currently have warehouses in 15 major U.S. markets, providing local delivery to customers, and we serve the rest of the country through e-commerce and other solutions.
What’s your business model?
Through the Odeko portal, our customers can purchase supplies from hundreds of national and local brands, track ordering trends, and finance equipment. Customers that use Odeko can increase their revenue, lower their expenses and environmental footprint, and save significantly on their cost of goods and time spent on vendor management. As we expand, we will continue to build our technology platform to make business easy, receive and pass on more competitive pricing on supplies, from oat milk to paper goods, and expand availability of unique offerings, from fresh baked goods to emerging local brands.
How are you preparing for a potential economic slowdown?
There is incredible pressure on our cafes. Tariffs are a top concern. We managed to be ahead of the tariffs by filling buildings with goods, which should soften the blow to our cafes. We have also been working with our makers on finding efficiencies to keep prices as stable as possible. We are doing all we can to stand by our customers and provide some stability in these turbulent times.
What was the funding process like?
We’re proud to close the raise in an incredibly challenging market. We are a critical backbone for local, independent businesses and are excited to use this funding to expand our offerings and services, so our customers can focus on what they do best: serving their communities and creating a great customer experience.
What are the biggest challenges that you faced while raising capital?
This fundraise was not easy. The market is far from recovered, especially for late-stage companies. We came off an 11,360% growth curve to swing fully into profitability, an adjustment our team made at scale in a year. This achievement was remarkable though insanely hard. We also ran a long process with few rocks left unturned. This is a true testament to our incredible team, and as tough as it was, we’re a better and stronger company for it.
What factors about your business led your investors to write the check?
Our investors chose to partner with us because they share our vision for the future and believe in our long-term strategy. B Capital and a few others have been with us since the Series B – we’re excited to draw on long-standing relationships for this new stage of growth.
What are the milestones you plan to achieve in the next six months?
Odeko will use the new funding in three ways: 1) to fuel growth through new services and cost savings for customers; 2) to acquire businesses that will extend its market reach and product offerings; and 3) to build out its leadership bench
Odeko will use the new funding in three ways: 1) to fuel growth through new services and cost savings for customers; 2) to acquire businesses that will extend its market reach and product offerings; and 3) to build out its leadership bench
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Startups are built with the mindset of winning – what’s needed now is the mindset of surviving. Founders need to find a way to stay in the game, make hard choices, hustle as you did years before, and simply existing will open more doors on the other side.
Where do you see the company going in the near term?
We’re a critical advocate for small food businesses – that means that we need to keep evolving the services we offer to ensure we’re adapting to how their needs change. We will continue expanding market share as well as pursue an acquisition strategy that brings unique services into our offerings — our acquisition of Butter Insurance was the first example of that.
What’s your favorite winter destination in and around the city?
Cozy cafes for hot chocolate, they are all amazing!
