Loop AI Raises $14 Million to Expand AI Platform for Restaurant Back Offices

Loop AI raised $14 million in a Series A funding round to expand its artificial intelligence (AI) platform for restaurant and retail back offices.

The company will use the new funding to expand its product suite and grow its headcount, it said in a Monday (Feb. 2) press release.

The Loop AI platform automates tasks across finance, operations and marketing, and enables restaurant operators to embrace delivery as a growth engine, according to the release.

“Delivery is the new drive-thru, and it is poised to fuel the next decade of growth for the restaurant industry,” Loop AI Co-Founder and CEO Anand Tumuluru said in the release. “As consumer behavior continues to shift towards takeout and delivery, our mission to make delivery more profitable for restaurant operators has never been more vital.”

Loop AI was launched in 2024 and now supports more than 300 brands and powers thousands of their locations in the United States, according to the release.

Osama Bedier, investment partner at Nyca Partners, which led the funding round, said in the release that Loop AI is building technology that will be indispensable for restaurant operators and that the company is readying its next phase of growth. Bedier will join Loop AI’s board of directors.

“Loop sits at the intersection of several transformative trends in the restaurant industry, including the rise of AI, a growing focus on customer experience and the drive for greater operational efficiency,” Bedier said. “These will be essential pillars shaping the future of dining.”

Loop raised $6 million in seed funding in March 2024, saying it aimed to partner with restaurants as they maximize their third-party delivery service profitability. At that time, the company was reconciling over $100 million of restaurant transactions.

“Third-party delivery is here to stay, and we’re on a mission to make it as profitable as possible for restaurant operators of all sizes, through simple, easy-to-implement operational and financial best practices,” Tumuluru said at the time in a press release.

PYMNTS Intelligence found in 2023 that restaurants were doing everything they could to reach customers on delivery marketplaces, in part because restaurant delivery was the highest-value channel, with the average order 25% higher than even the average in-restaurant sale.