Pepper raised $50 million in new funding to expand its technology platform for independent food distributors, aiming to accelerate digital adoption in an industry still dominated by manual processes and fragmented systems.
The funding round was led by Lead Edge Capital, with participation from existing investors ICONIQ, Index Ventures, Greylock, Harmony Partners and Interplay. Pepper did not disclose a valuation.
Pepper sells software that helps independent distributors digitize ordering, sales productivity, accounts receivable and embedded payments. The company said its platform is used by more than 500 distributors, representing $30 billion in annual gross merchandise volume, and supports more than 100,000 active foodservice operators across the United States.
CEO Bowie Cheung said the new capital will be used to expand product development and strengthen artificial intelligence capabilities across ordering, sales, and financial workflows, while deepening integrations with legacy enterprise resource planning systems that dominate the distribution sector.
Independent distributors account for more than two-thirds of food distribution in North America, representing more than $1.4 trillion in annual sales, according to company data. Yet much of the industry continues to rely on phone, fax and disconnected software tools, a gap that has become more pronounced as national distributors scale digital platforms and the sector consolidates.
Pepper said its software integrates with more than 70 ERP systems, allowing distributors to modernize operations without replacing the core systems that run their businesses. The company positions its platform as an end-to-end alternative to point solutions that address ordering or sales but fail to connect finance, payments, and customer data.
The company said proceeds from the Series C round will be used to expand its Storefront, Sales Hub, Order Agent and Finance Hub products, introduce additional AI-driven automation tools, and scale integrations across the food distribution technology stack. Pepper also plans to invest in go-to-market and customer support functions to support broader adoption.
Aaron Darr, a principal at Lead Edge Capital, said independent food distributors operate at significant scale but remain technologically siloed, creating demand for shared infrastructure tailored to the sector.
Founded in 2014, Pepper has headquarters in New York. Lead Edge Capital is a growth equity firm with more than $5 billion in assets under management and offices in New York, London, and Santa Barbara.
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