Customer loyalty and FinTech Paytronix has secured $10 million in new funding led by Great Hill Partners and the company’s Co-founders Matt d’Arbeloff and Andrew Robbins. The new funds will help the firm service its restaurant, convenience store and grocery clients as the coronavirus pandemic continues to upend business.
“Our restaurant clients are suffering, but we’ve also seen signs of hope. We know from our experience enduring through boom and bust cycles that loyal guests help get brands through the tough times. This funding is designed to ensure that our tools will help our clients get through this crisis,” Robbins said in a statement on Tuesday (April 28).
Additional investors in the funding round include Tim Ridgely, founder of Open Dining, which was acquired by Paytronix in August 2019. Paytronix will also have access to expanded credit from Silicon Valley Bank.
The foodservice space has been slammed by the crisis, with nearly two-thirds of the restaurant workforce sidelined. Sales plummeted as much as 90 percent in some areas of the country. A deep dive into Paytronix's customer data is now showing some promise with an upward trend.
Robbins said the pandemic is “driving remarkable innovation” in the foodservice sector, something that is greatly needed by restaurants that are seeking creative approaches to ordering and delivery.
Paytronix has introduced updates and innovations to help the industry stay on track, such as a tool to help restaurants quickly launch online ordering and delivery. Other offerings include one-tap touchless payments tied to loyalty programs, Google Wallet and Apple Pay integration, and a new scoring system to connect guests with tailored offerings.
“The hospitality market has clearly taken a powerful hit during this time of crisis. But right now is the time to double down on what works and invest intelligently. We believe the Paytronix team has a great vision for the future and is building products that will help operators navigate through these trying times today, as well as through the long-term recovery,” said Nick Cayer, partner at Great Hill Partners.
Last month, Paytronix urged restaurants to make use of gift cards, which can help ease the burden many are facing. Gift cards are essentially interest-free loans from a consumer, the company said, and are a good way to get a consumer to come back when a restaurant reopens.