Pepper, a NYC-based provider of an end-to-end technology platform for independent food distributors, has raised $50 million in a Series C funding round led by Lead Edge Capital.
The round also saw participation from ICONIQ, Index Ventures, Greylock, Harmony Partners, and Interplay.
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The company plans to use the funds to enhance product innovation, strengthen its AI capabilities, and speed up adoption across the independent food distribution market.
Pepper is an end-to-end technology platform for independent food distributors. Its products help distributors increase revenue and improve productivity by modernizing key processes, including ordering, sales and marketing, accounts receivable, and embedded payments. The company works with more than 500 distributors, representing about $30 billion in annual gross merchandise volume, and supports over 100,000 active operators nationwide.
Pepper’s platform supports all parts of distributor operations, including commerce, sales productivity, finance and collections, embedded payments, and supplier marketing, as well as a growing advertising platform for food manufacturers. Pepper also stands out for handling complex ERP integrations at scale, enabling distributors to modernize their operations without replacing their existing core systems.
Independent distributors make up more than two-thirds of the food distribution market in North America, representing over $1.4 trillion in annual sales. However, the industry remains highly fragmented and often relies on manual outdated systems. Pepper’s platform addresses this challenge with comprehensive tools, and workflow automation designed specifically for distributors including more than 70 ERP integrations that connect legacy systems into a single digital platform.
As the industry continues to consolidate and face pressure from large distributors, Pepper’s open platform gives independent distributors the tools they need to gain market share and compete more effectively in a changing market.
Capitalizing on Momentum to Expand the Platform
Pepper has grown into a full-service technology partner for food distributors. The new funding will help strengthen its position as a market leader and support further development of its product roadmap, including new features and capabilities.
- Launching next-generation AI and data tools to help distributors increase profitability, automate routine tasks, and improve core operations
- Expanding Pepper’s Storefront, Sales Hub, Order Agent, Finance Hub, and Growth Agent to support full end-to-end operations
- Growing integrations across the food distribution technology ecosystem to enable faster onboarding and better system connectivity
- Continuing to invest in go-to-market and customer success teams to drive wider adoption
“Aaron Darr, Principal at Lead Edge Capital, said the firm’s investment in Pepper builds on its experience supporting leading technology platforms in large, fragmented markets. He noted that independent food distributors operate at significant scale but often work in silos and Pepper offers the shared technology platform that helps connect and unify the market.”
“Jackie Oakes, Director of Marketing at Flanagan Foodservice, said Pepper has greatly improved their daily operations. She said the platform brings better visibility and faster processes, making it a key tool for serving customers efficiently at scale.”
“Brian Handley, President at Palmer Food Services, said Pepper is creating software for the future of food distribution that can be used today. He added that as the industry changes, the platform allows them to invest in long-term technology while still achieving their short-term goals.”
About Pepper
Founded by CEO Bowie Cheung, Pepper is a full-service technology platform for food distributors that manages ordering, sales, and marketing, accounts receivable, and embedded payments in a single system. Its AI-powered tools help distributors grow revenue, improve productivity, and modernize their operations. The company is headquartered in New York City, NY.
About Lead Edge Capital
Lead Edge Capital is a $5 billion growth equity firm that invests in software, internet, and tech-enabled companies worldwide. Founded in 2011, the firm has backed leading businesses such as Alibaba Group, Asana, Toast, and Wise. Lead Edge stands out for its network of more than 700 executives and entrepreneurs who help portfolio companies connect with customers, partners, and talent to drive growth. The firm has offices in New York City, London, and Santa Barbara.
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