Brazilian startup Brendi has successfully secured a $6.6 million investment round led by American fund Propel Ventures. The company aims to challenge the dominance of traditional delivery apps by empowering restaurants to manage orders directly through WhatsApp. This funding will fuel its expansion and enhance its AI-powered conversational commerce platform for food service businesses across Brazil.
A Strategic Investment in Conversational Commerce
The investment was facilitated by key angel investors, including iFood co-founder Patrick Sigrist and Hyperplane founder Daniel Silva. Their endorsement highlighted Brendi's potential to Propel Ventures, a firm known for backing successful fintechs like Banco Neon and Nomad. The round also saw participation from Brazilian funds Big Bets, Norte Ventures, and Citrino, signaling strong local and international confidence.
Revolutionizing Restaurant Operations
Brendi provides restaurants with a platform that uses artificial intelligence to automate customer interactions and order processing entirely within WhatsApp. The system handles text and audio requests, integrates a digital menu, and processes payments, eliminating the need for human attendants. This creates a direct and cost-effective sales channel for establishments, reducing their dependence on high-commission delivery marketplaces.
Fueling Ambitious Growth Plans
The company has demonstrated significant traction, growing its client base to 7,100 restaurants and increasing processed orders from 140,000 to 420,000 per week over the last year. With the new capital, Brendi plans to expand its network to between 10,000 and 15,000 restaurants by the end of the year. A portion of the funding, $1.4 million, was also used to repurchase shares from early angel investors.
Financially, Brendi reports an Annual Recurring Revenue (ARR) of nearly $5 million, with projections to reach up to $9 million by the end of 2024. The startup is targeting an ARR of $20 million by 2027, supported by a gross margin exceeding 40 percent. Founder Daniel Frageri stated the company intends to begin planning for a Series A round within the next six months.
A Niche in a Competitive Market
Brendi positions itself as a technology partner for restaurants rather than a direct competitor to delivery giants like iFood or Rappi. The platform allows restaurants to use their own delivery staff or third-party logistics, offering a flexible alternative. This model has proven particularly successful in smaller cities, where 85% of its client base is located and traditional app penetration is lower.
This $6.6 million investment marks a significant milestone for Brendi, validating the growing potential of conversational commerce in the food delivery industry. By providing restaurants with tools to reclaim their customer relationships and reduce costs, the company is well-positioned for continued growth. The funding will enable Brendi to scale its operations and solidify its role as a key innovator in Brazil's competitive tech landscape.