Pepper Raises $50 Million Series C to Accelerate Digital Transformation in Food Distribution
Pepper, the end-to-end technology platform purpose-built for independent food distributors, has announced the successful close of a $50 million Series C funding round. The investment will fuel product innovation, expand AI-driven capabilities, and accelerate adoption across the independent food distribution ecosystem.
The round was led by Lead Edge Capital, with continued backing from prominent investors including ICONIQ, Index Ventures, Greylock, Harmony Partners, and Interplay.
This latest funding round underscores growing investor confidence in Pepper’s vision to modernize one of the largest yet historically underserved industries in North America.
Modernizing a Fragmented Industry
Food distribution represents one of the most essential and expansive sectors in the global economy. Yet despite its size and importance, the industry has long relied on manual processes, disconnected systems, and outdated legacy technologies.
Independent distributors account for more than two-thirds of food distribution in North America, contributing to over $1.4 trillion in annual sales. However, much of this activity operates within a fragmented landscape characterized by siloed workflows and analog tools.
Pepper aims to bridge this technological divide by delivering a unified digital platform that integrates core distribution functions into a seamless operating environment. The company’s suite of products modernizes critical workflows across:
- Ordering and e-commerce
- Sales and marketing
- Accounts receivable and collections
- Embedded payments
- Supplier marketing and advertising
By consolidating these functions into one connected ecosystem, Pepper enables distributors to eliminate inefficiencies, improve visibility, and drive sustainable growth.
A Platform Built for Scale
Today, Pepper serves more than 500 independent distributors, collectively representing approximately $30 billion in annual gross merchandise volume (GMV). The platform supports over 100,000 active operators nationwide, demonstrating significant traction across the market.
At the core of Pepper’s success is its ability to integrate deeply with existing enterprise systems. The platform offers more than 70 ERP integrations, allowing distributors to modernize their operations without replacing the legacy systems that run their businesses.
This integration-first approach enables distributors to:
- Maintain continuity in existing infrastructure
- Streamline onboarding and implementation
- Ensure interoperability across tools
- Build a unified digital operating stack
Pepper stands out in the market as one of the few companies to consistently solve ERP integration complexity at scale—an achievement that has become a key differentiator in a traditionally resistant industry.
Leadership Perspective: Building the Next Generation Platform
Bowie Cheung, CEO of Pepper, emphasized the transformative opportunity ahead:
Food distribution is one of the largest and most fundamental markets in the world, yet it has long operated on manual systems and fragmented technology. This newest round of funding enables us to build the next generation of platform capabilities our customers rely on to run every critical part of their business.
Cheung highlighted that independent distributors increasingly face competitive pressure from large national players. Historically, advanced technology advantages have been concentrated among major industry giants. Pepper’s platform levels the playing field by giving independent operators access to enterprise-grade capabilities tailored to their needs.
As industry consolidation accelerates, independent distributors must adopt modern tools to remain competitive. Pepper’s open platform approach ensures they can do so without sacrificing operational flexibility.
Strategic Use of Series C Funding
The $50 million Series C investment will support Pepper’s next phase of expansion and innovation. Key initiatives include:
1. Advancing AI and Data Capabilities
Pepper plans to introduce next-generation AI-powered tools that help distributors:
- Maximize profitability
- Automate repetitive tasks
- Improve forecasting and analytics
- Streamline day-to-day operations
AI-driven insights will empower distributors to make smarter decisions across pricing, inventory management, and sales performance.
2. Expanding Core Product Modules
Pepper will enhance and scale its existing product modules, including:
- Storefront
- Sales Hub
- Order Agent
- Finance Hub
- Growth Agent
These modules work together to support end-to-end distributor operations, ensuring seamless connectivity from order placement to payment reconciliation.
3. Scaling Integrations
Further investment will be directed toward expanding integrations across the food distribution technology stack. This will enable faster onboarding and greater interoperability, helping distributors adopt the platform more efficiently.
4. Strengthening Go-to-Market and Customer Success
Pepper will continue investing in sales, marketing, and customer support teams to drive broad adoption and ensure long-term customer success.
Investor Confidence in a Category-Defining Platform
Aaron Darr, Principal at Lead Edge Capital, highlighted the strategic rationale behind the investment:
Independent food distributors operate at enormous scale but remain siloed. Pepper provides the shared technology infrastructure that brings that market together.
Lead Edge Capital has a history of backing category-defining technology companies operating in fragmented, high-potential markets. Pepper’s position within the food distribution ecosystem aligns closely with that investment philosophy.
The strong participation from existing investors further reinforces confidence in Pepper’s growth trajectory and long-term vision.
Customer Impact: Real-World Transformation
Pepper’s impact extends beyond operational efficiency—it fundamentally reshapes how distributors operate and serve customers.
Jackie Oakes, Director of Marketing at Flanagan Foodservice, described the platform as transformative:
Their platform gives our team clarity and speed we didn’t have before, and it’s become a critical part of how we serve our customers at scale.
Similarly, Brian Handley, President at Palmer Food Services, emphasized the strategic value of adopting forward-looking technology:
As the industry evolves, their platform lets us invest confidently in long-term technology while continuing to deliver on our near-term goals.
These testimonials illustrate how Pepper enables distributors to balance immediate operational improvements with long-term strategic growth.
Addressing Industry Consolidation and Competitive Pressure
The food distribution industry continues to undergo consolidation, with large national distributors expanding their reach and capabilities. Independent operators must compete not only on pricing but also on service speed, data visibility, and customer experience.
Pepper’s open architecture empowers independents to:
- Capture greater market share
- Enhance digital ordering experiences
- Improve sales team productivity
- Optimize collections and payment workflows
- Monetize supplier relationships through advertising tools
By centralizing commerce, finance, and marketing functions, the platform helps distributors operate with the sophistication traditionally reserved for major industry players.
Supporting End-to-End Operations
Pepper’s technology supports every major component of distributor operations, including:
- Commerce and digital ordering
- Sales productivity and CRM workflows
- Finance and accounts receivable management
- Embedded payments and transaction processing
- Supplier marketing and advertising initiatives
The company has also developed a growing advertising platform for food manufacturers, enabling new revenue streams within the distributor ecosystem.
Through automation and integration, Pepper reduces manual workload while improving transparency and collaboration across teams.
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