Zak Raises Funding to Expand Digital Restaurant in Latin America

Adapting to Change: The Rise of Zak in the Latin American Food Service Industry

Traditionally, restaurant businesses have prioritized quality cuisine and excellent customer service. However, the pandemic necessitated a shift in strategy, forcing many operators to explore novel methods of reaching their clientele when in-person dining declined.

From Dark Kitchens to All-in-One Management

David Grandes and Andres Andrade, longtime friends with roots in Ecuador, launched Mimic in Brazil in 2018. Initially, the company functioned as a dark kitchen-as-a-service, concentrating on large-scale food production for online sales channels.

Having experience as food service operators themselves, Grandes and Andrade directly observed the difficulties restaurants faced when attempting rapid digitalization during the pandemic. Many lacked the knowledge to effectively integrate new technologies into their operations.

Recognizing this need, they transitioned their company to Zak, a comprehensive management solution. This platform delivers both digital and financial tools to the food service sector without requiring fixed costs.

Zak’s Comprehensive Technology Suite

Zak’s technology offers a complete overview of restaurant operations. It encompasses point-of-sale systems, back-office functionalities, and both online and offline payment processing.

Furthermore, the platform seamlessly integrates with popular delivery aggregators such as iFood, Uber Eats, and Rappi, streamlining order management.

Expansion and Funding

Currently, Zak serves over 300 restaurants throughout São Paulo. The company recently secured $15 million in Series A funding, spearheaded by Tiger Global Management, to broaden its reach across Brazil.

Planned expansion cities include Rio de Janeiro, Belo Horizonte, Campinas, Brasília, and Salvador.

Additional investors in this funding round include Valor Capital Group, Monashees, Base 10, and Canary, bringing Zak’s total funding to date to a significant amount.

Future Growth and Strategic Vision

“We are now prepared to enter the broader market,” stated Grandes, co-founder and co-CEO, in an interview with TechCrunch. “This funding will allow us to refine our product and expand our teams.”

While the initial focus remains on Brazil, the company envisions substantial opportunities for expansion into Latin America, with Mexico – representing 50% of the regional restaurant market – as a primary target. A strategic shift towards becoming an embedded finance company is also underway.

Zak intends to double its workforce to 324 employees by the end of 2022. New services, such as customer relationship management and marketing automation, will be added to enhance restaurants’ omni-channel capabilities.

Market Opportunity and Financial Services

The company’s pivot has dramatically increased its total addressable market, expanding it “100 times over.” Andrade, co-CEO, highlighted that Nubank’s recent IPO provides Zak with valuable insights into restaurant financial transactions.

This positions Zak to launch financial services, offering advantages over digital wallets, invoicing solutions, and providing access to capital for restaurants often denied traditional loans.

Ultimately, the company aspires to become the leading restaurant management platform in Latin America – the “Toast of LatAm,” as Grandes articulated.

Impressive Growth and Future Projections

Zak has experienced substantial growth, with revenue increasing fourfold in the past year. The platform currently processes approximately $100 million in payments monthly, according to Marina Lima, the company’s chief revenue officer.

Similar growth is anticipated over the next 12 months, with projections exceeding $350 million in payments processed through Zak by the end of that period.

With one million restaurants in Brazil, Grandes emphasizes the significant potential for further downstream expansion.

“Our priorities are dominating the Brazilian market, strengthening our team, product, and platform,” he concluded. “We are already well-positioned and our next steps involve consolidating our presence across Brazil before expanding into Mexico.”