AI-powered platform bags investment for simplified F&B sourcing
11 Apr 2024 --- Germany-based Torg has raised €2.7 million (US$2.9 million) in an oversubscribed seed round to transform F&B sourcing with its AI-powered platform. Through this technology, Torg helps retail and wholesale buyers find and connect with over 100,000 F&B suppliers in Europe.
With the new capital, Torg seeks to develop its platform, expand its supplier database and create new buyer tools.
Investor Connect Ventures led the seed round. Both existing investors, such as FoodLabs, and new investors, such as Sondo, Ventures Together, Sameer Singh and Jonas Meynert, joined the round.
“Buyers have few good ways of finding new manufacturers. They rely on trade fairs, which occur once a year and where less than 10% of global suppliers exhibit or on desktop research, sifting through unverified websites. The market is much bigger than most buyers realize,” says Hans Furuseth, co-founder and CEO of Torg.
“We democratize private label products by opening up the market, creating more transparent supply chains and putting less known, quality suppliers on the map. We aim to create meaningful business connections for both sides of the market.”
“In a way, we’re Tinder for sourcing.”
Efficient sourcing
Building on its founders’ experience at e-commerce platforms, Torg was created to solve the “inefficiencies of the sourcing process.” The start-up developed a digital platform to improve and simplify the process, making it more transparent and saving time and money for buyers and sellers.
Sitar Teli, partner at Connect Ventures, comments: “The drivers are clear — consumers are demanding transparency, certifications and lower prices for the food they purchase, and grocers and wholesalers are looking to own more of their supply chain in response.”
He adds that Torg has created the first digital sourcing platform for private-label food and beverage, “bringing sourcing decades ahead from where it is now.”
Typically, F&B procurement is highly manual, with buyers investing time to find, verify and vet suppliers.
Buyers joining Torg set up a product request in around two minutes and distributed it to hundreds of relevant manufacturers, streamlining the sourcing process and communication. All suppliers on its marketplace are vetted and verified.
Workflow tools
Suppliers are paid through Torg and receive relevant requests from verified buyers.
Moreover, Torg helps improve their visibility and online exposure and supports their workflow management with various tools.
Previously, a report released by Rabobank highlighted the potential of AI to transform the food sector by refining operation processes but also poses risks to the industry, such as affordability issues, “AI washing” and the dangers of irresponsible use.
By Jolanda van Hal
