Last summer, Burda Principal Investment (BPI) led NeoTaste’s Series A funding round. Now, the growth capital provider of Hubert Burda Media is also participating in the next round. The app-based solution for connecting restaurants with their customers convinced BPI with its early traction, scalability, and network effects.
Scalability and network effects convinced BPI early on
The company raised €15.1 million in the current Series A extension which was led by European venture capital fund Earlybird.
The app is based on bringing consumers and restaurants together on the platform to create a win-win situation. Consumers receive exclusive dining deals and restaurants can expand their customer base. The service is free of charge for restaurants and funded by a subscription model on the consumer-side. Over the past six months, BPI’s portfolio company has shown impressive growth figures: In August 2023, 300,000 users were able to choose from around 1,300 restaurants in 13 German cities. Today, 750,000 consumers use the app, which provides them access to deals in more than 3,000 restaurants across 27 German cities. And the offer is continuously growing: the start-up is currently adding one new city to their offering every week.
Aiming for further international expansion and new features
Apart from expanding to multiple German cities, NeoTaste has also started to go international this year. Amsterdam, the first city outside of Germany, was launched in February and the capital from the current funding round will be used to continue international expansion. NeoTaste aims to make the app available in numerous additional German and European cities by the end of the year. Additionally, NeoTaste is planning new features to further enhance the digital interaction between restaurants and customers, including direct reservation capabilities.
“Our investment in NeoTaste in the summer of 2023 was a clear commitment to the company’s impressive growth and potential. The success beyond our expectations, especially in terms of expansion and internationalisation, reinforces our enthusiasm,” says Friedrich von Wulffen, Investment Manager at BPI.
“We look forward to continuing to work with Hendrik, Tobias and the entire team – now alongside Earlybird as a new and strong partner,” adds Julian von Eckartsberg, Managing Director Europe at BPI.
“”The last six months of collaboration between NeoTaste and BPI have been an incredible journey. Julian and Friedrich recognised the potential of NeoTaste early on and placed a lot of trust in us. We are very pleased that we have been able to turn this trust into action and results at an early stage. Receiving further capital just six months after the last funding round opens new doors for us. After a successful partnership so far, we are delighted that BPI is again participating in this round and continues to place its trust in us”, explains NeoTaste CEO Hendrik Sander.
Win-win for restaurants and consumers
NeoTaste Co-Founders Hendrik Sander and Tobias Düser launched the app in September 2021. After using the time during the covid pandemic, when restaurants were closed, to prepare their platform, NeoTaste was subsequently launched with first deals in Hanover. While subscribers benefit from offers – such as ‘two main courses for the price of one’ – the restaurant can use NeoTaste to promote itself, generate new customers and receive customer reviews.
