Exclusive: Pepper shakes out $50M Series C

Exclusive: Pepper shakes out $50M Series C

Pepper, a business platform developer for independent food distributors, raised a $50 million Series C led by Lead Edge Capital, CEO Bowie Cheung tells Axios Pro exclusively.

Why it matters: The food distribution market is worth more than $1.3 trillion, yet few independent players have access to the level of technological infrastructure needed to scale.

Zoom in: ICONIQ Capital, Index Ventures, Greylock, Harmony Partners, and Interplay also joined the Series C.

How it works: Pepper's platform provides a digital storefront for independent food distributors, as well as ordering, sales and marketing, accounts receivable, and embedded payments features.

State of play: While the food distribution market is dominated by big players like U.S. Foods and Sysco, two-thirds of the market is serviced by independent distributors, Cheung says.

What they're saying: "This is a market that is dying for technology innovation," says Aaron Darr, principal at Lead Edge Capital.

By the numbers: Pepper has more than 500 customers who sell more than $30 billion annually.

The company has more than quadrupled revenue since spring 2024, Cheung says.

Founded in 2019, the New York-based company has raised $100 million.

What's next: Pepper aims to double its customer base in the next 18 months.