GrubMarket Enters Financial Services With IOT Pay Acquisition

GrubMarket has acquired Vancouver-based FinTech IOT Pay, according to a Tuesday (Aug. 2) press release. The acquisition will allow the company to use IOT Pay’s technology and payments infrastructure to streamline the food supply chain industry as it pushes for more flexible digital payment and financial opportunities.

The IOT Pay platform powers thousands of North American merchants, including several online food delivery platforms, online courier platforms across Canada and offline merchants, such as BMW, Mercedes Benz, Arby’s, HMart, Sungiven Foods and Rolex.

The company manages tens of thousands of daily transactions through point-of-sale terminals, mobile payments, eCommerce, cross-border payments, CRM and order management software, the joint press release said.

“We work with many companies in the foodservice and grocery space and have seen firsthand how impactful it is to build effective FinTech solutions for one of the oldest industries in the world,” said Leo Chen, founder and CEO of IOT Pay. “GrubMarket originally invested in us to help accelerate our vision to be a top payments solution provider.

“Now, we are thrilled to join the GrubMarket team and deeply integrate with GrubMarket’s best-in-class eCommerce and software ecosystem to create more value with our payment solutions and financial services for companies operating throughout the food supply chain,” he said.

IOT Pay is also planning to roll out a digital banking system with B2B financial solutions for small and medium-sized businesses (SMBs).

“This is a huge milestone in GrubMarket’s history,” said GrubMarket CEO Mike Xu. “It reminds me of the old days when eBay acquired PayPal. Every great eCommerce company has offered seamless payments solutions to their customers, and we have now acquired the capability to do so as well.”

Related: B2C Food Platform GrubMarket Nets $60M, Eyes IPO

In October 2020, GrubMarket raised $60 million in its Series D fundraising round, led by BlackRock, Reimagined Ventures, Trinity Capital Investment and numerous others.

GrubMarket works in a B2C role in which it ships goods to individuals, and also a B2B role by supplying grocery stores, meal kit startups and other companies.

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