Plate IQ, which works in restaurant and hospitality accounts payable (AP) automation and payments, has raised $160 million in a Series B funding round, according to a press release emailed to PYMNTS. The money will go toward closing the supply chain gap that exists between vendors and operators through automation.
The growing gap divides vendor expectations of when payment will be received and the ability of businesses to process invoices and pay on time, the release stated.
There is also additional margin pressure that comes from volatile commodity prices, according to the release. Labor shortages also increase to the number of businesses seeking new alternatives.
“I’m excited to build on our amazing payments experience, not just for our restaurant and hospitality customers, but also for customers in other verticals such as grocery, professional services, retail and more,” said Barrett Boston, newly announced CEO of the company, in the release.
In October, Plate IQ debuted its VendorPay product, which is a network letting customers pay vendors directly from the AP platform, earning cash back through digital payments, the release stated. Vendors have the option to use it to track payment status of invoices, as well as digitally reconcile payments to outstanding invoices.
Plate IQ’s VendorPay allows vendors to use ACH, virtual cards and checks to send and track payments.
“The relationship between hospitality operators and their vendors are at the core of maintaining successful businesses,” said then-CEO Bhavuk Kaul in October, according to a separate press release. “By eliminating the manual checks-in-mail step and shifting everything online, Plate IQ’s VendorPay Network helps build that cornerstone relationship with a cohesive experience that combines payment convenience and transparency. With VendorPay, businesses earn cash back on invoices, and vendors get paid 25% faster. That’s a win-win for the industry.”