Foodics Launches Capital 2.0 To Speed Up Restaurant Financing

Foodics has launched a new automated funding solution designed to give restaurants faster access to capital by using their operational and financial performance data to determine eligibility.

Unveiled at Money20/20 Middle East in Riyadh, Capital 2.0 uses AI-powered credit scoring to assess restaurant performance and automatically pre-qualify eligible operators for financing.

The system is designed to reduce reliance on traditional funding applications, which can be lengthy and may not fully account for the way restaurant businesses generate revenue.

Restaurants that qualify can select their preferred funding terms and complete the process digitally, with Foodics saying approved financing can be disbursed within four hours.

The MENA restaurant operations and financial technology platform is targeting SAR 375 million in funding through Capital 2.0 during its first year.

Funding from SAR 20,000 to SAR 2 million-plus

Capital 2.0 is designed to support several financing requirements across the F&B industry, ranging from short-term working capital to larger expansion plans.

Funding can start at approximately SAR 20,000 for working capital and rise to SAR 2 million or more for restaurant expansion. The solution can also facilitate invoice factoring for suppliers.

Rather than relying on a fixed larger monthly repayment, repayments are collected through smaller deductions from restaurants' daily settlements, spreading the cost over time.

The approach uses data already generated through restaurant operations to assess businesses based on their actual trading performance. By embedding the credit-scoring process within its platform, Foodics aims to identify qualifying businesses automatically and shorten the time between eligibility and access to funds.

Access to financing can be particularly challenging for smaller restaurant operators, making alternative funding models increasingly relevant as businesses seek capital for expansion, inventory, equipment and other operational requirements.

Foodics expands financial services offering

The launch forms part of a broader expansion of financial services within the Foodics ecosystem.

At Money20/20 Middle East, the company is also showcasing expanded omni-channel payment solutions alongside new reconciliation and instant settlement capabilities.

Foodics is additionally developing its MyFoodics App into a single account through which restaurant operators can manage sales, cash, payouts and access to capital.

The expansion builds on the company's existing Restaurant Management Suite, bringing more financial functions into the same ecosystem used by merchants for their everyday restaurant operations.

It also represents a wider shift in Foodics' strategy, extending its role beyond restaurant management technology into payments and financial services for F&B businesses.

Founded in 2014, Foodics provides restaurant operations, payments and financial technology across the MENA region. Its platform serves businesses including dine-in restaurants, cafés, quick-service restaurants, bakeries, food trucks and cloud kitchens.

The company says more than six billion orders have been processed through its platform. Foodics has also previously raised US$170 million in a Series C funding round.

With Capital 2.0, the company is now seeking to use the operational data flowing through that ecosystem for another purpose: determining which restaurant businesses qualify for financing and giving eligible operators faster access to funds.