Pepper has raised $50 million in Series C funding to expand its technology platform for independent food distributors. The round was led by Lead Edge Capital, with participation from existing investors ICONIQ, Index Ventures, Greylock, Harmony Partners, and Interplay. The funding will help the company deepen its AI capabilities, expand its product suite, and accelerate adoption across the food distribution ecosystem.

The company’s platform supports more than 500 distributors across the United States, representing about $30 billion in annual gross merchandise volume. Over 100,000 operators use Pepper’s system to manage workflows spanning ordering, sales, payments, and financial operations. This new investment reflects growing demand for modern tools in an industry long dependent on manual processes and fragmented systems.

A massive industry still dependent on outdated systems

Food distribution is one of the largest commercial sectors in North America. Independent distributors account for more than two thirds of the market, generating over $1.4 trillion in annual sales. Despite that scale, many still rely on disconnected tools and legacy systems that limit efficiency and growth.

Pepper aims to address this gap. Its platform integrates with more than 70 ERP systems, allowing distributors to modernize operations without replacing their core infrastructure.

“Food distribution is one of the largest and most fundamental markets in the world, yet it has long operated on manual systems and fragmented technology. This newest round of funding enables us to build the next generation of platform capabilities our customers rely on to run every critical part of their business, from ordering workflows to sales productivity and payments capabilities. Independent distributors can no longer survive on legacy technology, and our product suite gives these business owners the same technological advantage that has historically been reserved for food industry giants.”

Bowie Cheung, CEO of Pepper.

Investors also see the opportunity. Aaron Darr, Principal at Lead Edge Capital, emphasized the scale of the problem and Pepper’s position within the sector.

“Our partnership with Pepper builds on Lead Edge Capital’s experience backing category-defining technology platforms in fragmented, high-potential markets. Independent food distributors operate at enormous scale but remain siloed. Pepper provides the shared technology infrastructure that brings that market together.”

Aaron Darr, Principal at Lead Edge Capital.

Investment focused on AI, integrations, and platform expansion

Pepper will use the new funding to expand its platform capabilities and improve how distributors manage daily operations. The company plans to introduce advanced AI and data tools that help customers automate repetitive tasks, increase profitability, and improve operational efficiency.

The company is also expanding its core product modules, including Storefront, Sales Hub, Order Agent, Finance Hub, and Growth Agent. These tools cover the full distributor lifecycle, from customer ordering to financial reconciliation. Pepper is also investing in integrations across the broader distribution technology stack, which will allow faster onboarding and smoother data exchange between systems.

In parallel, the company plans to strengthen its go to market and customer success teams. These efforts are designed to increase adoption and support distributors as they move away from manual workflows and toward fully digital operations.

Customers rely on Pepper to modernize operations

Pepper’s platform already plays a central role in distributor operations across commerce, finance, payments, and supplier marketing. The company has also built a growing advertising platform that allows food manufacturers to promote products directly through distributor networks.

“Pepper has fundamentally changed how we operate day to day. Their platform gives our team clarity and speed we didn’t have before, and it’s become a critical part of how we serve our customers at scale.”

Jackie Oakes, Director of Marketing at Flanagan Foodservice.

Customers say the technology delivers clear operational benefits. Brian Handley, President at Palmer Food Services, shared a similar perspective.

“Pepper is building software for the future of food distribution – software we can put to work today. As the industry evolves, their platform lets us invest confidently in long-term technology while continuing to deliver on our near-term goals.”

Brian Handley, President at Palmer Food Services.

Company overview and long term positioning

Pepper is headquartered in New York City and focuses exclusively on technology for food distributors. Its unified platform connects ordering, sales and marketing, accounts receivable, and embedded payments into one system. By integrating with existing ERP tools, Pepper allows distributors to modernize without disrupting core infrastructure.

This approach has helped the company scale quickly. Pepper now serves hundreds of distributors nationwide and supports billions in annual transaction volume. Its focus on interoperability and workflow automation differentiates it in a category where replacing legacy systems is often expensive and risky.

Lead Edge Capital, which led the funding round, is a growth equity firm managing $5 billion in assets. The firm invests in software and technology companies globally, including businesses such as Alibaba Group, Asana, Toast, and Wise. Its investor network includes more than 700 executives, founders, and operators who support portfolio company growth.

Origianl Creator: Paulo Palma
Original Link: https://justainews.com/companies/funding-news/pepper-raises-50m-series-c-funding-to-scale-ai-platform-for-distributors/
Originally Posted: Fri, 20 Feb 2026 15:08:58 +0000