Investible portfolio company Mosaic Solutions, a Philippines-based tech startup that provides profit optimisation solutions for the F&B and hospitality industries, has raised US $1.5 million in Pre-Series A preferred equity and convertible debt. With these funds, Mosaic will further enhance its software, which provides restaurants and off-premise food retailers a comprehensive and immediate view of their key cost and revenue drivers to help make data-driven decisions, as they focus on bouncing back during this post-quarantine recovery period.
“Our cloud-based solutions provide our customers with the information they desperately need right now—real-time, holistic data analytics, reporting and business insights, seen at the outlet and brand level,” says Brett Doyle, CEO.
The Mosaic Solutions include data analytics, inventory management, point of sale and purchasing — which are offered primarily to the food and beverage sector across Southeast Asia. This includes multi-unit restaurant and bar groups, cloud kitchens, commissaries, hotels and casinos, and now retailers, such as supermarkets and convenience stores.
“Mosaic is first and foremost a solution provider for restaurants, but we made a shift in focus early in the COVID pandemic to include off-premise food retailers, signing our first off-premise retailer in March,” shares Doyle.
“We saw an opportunity to help this underserved sector and diversify our customer portfolio by adding a lockdown-resistant, high growth sector.”
With quarantine rules putting restaurants in a state of decreased sales and operations, everyone is concerned about cash flow. Using Mosaic’s products will save money for F&B owners and help operators get a handle on their cash flow levers to improve their bottom line. Whether from a reduction in waste, optimised menu engineering or more efficient labour management, Mosaic’s solutions can help restaurants save money and maximise cash flow.
Since launching in 2016, the company has raised over US$3 million from investors in the United States, Australia, New Zealand, the Philippines, Malaysia and Singapore. Funding for this equity round was led by Investible.
“Mosaic has a unique product offering in the South-East Asian market that has already seen some validation across industries and countries within the region. In particular, we were drawn to Brett’s vision for the product and his proven execution capability,” said Daniel Veytsblit, Investment Director, Investible.
Other investors include Ideaspace (a non-profit running an accelerator and support programs for tech startups in the Philippines), the KMC Founders Fund, JC Capital International (representing investors across SE Asia, including Malaysia and Singapore), high net worth individuals, family offices and strategic investors, including RCGI, owners of multiple concepts in the Philippines, including Barcino, Single Origin, Bluesmith, Meat Depot and Meatworld International.
“As customers of Mosaic Solutions, we immediately recognised the benefits its offering could have on the entire hospitality industry in the Philippines and throughout Southeast Asia,” states Diego Lorenzo, Director of RCGI.
“We believe so strongly in what Mosaic is doing, we also made the decision to become strategic investors to help further fund product development and business expansion.”
Mosaic sells products using a Software as a Service (SaaS) model – this cost-effective monthly subscription further helps clients optimise cash flow by avoiding large upfront costs typical for some other software providers. Given this SaaS model, Mosaic also benefits from a highly recurring revenue model. Mosaic grew its customer base (measured as number of outlets) at an annual rate of 300% from 2016 to 2019. Further, with its expansion into off-premise, Mosaic more than tripled its footprint during 1H 2020.
Currently, Mosaic services over 100 customers, representing approximately 1,000 outlets, across the Philippines, Singapore, Vietnam, India and UAE, with a primary focus on the Philippines. Mosaic sees a great opportunity in the F&B sector across SE Asia, with on-premise F&B spending projected to double to USD 5 billion by 2022, and the total F&B market projected to grow to over USD 125 billion by 2023. In fact, the Asia Pacific region is expected to become the largest F&B region for consumption worldwide by 2030. Mosaic’s product enhancements and business developments will enable it to take advantage of these growth dynamics. Mosaic will further strengthen its efforts to support off-premise food retailers, while continuing to delight its core restaurant customers. Besides seeking further growth in the Philippines market, next steps for Mosaic will include regional expansion supported by a Series A capital raise presently planned for 2021.