Mr Yum Secures $65M Funding Led by Tiger Global

The Rise of QR Code Ordering: Mr Yum Secures $65 Million in Series A Funding

The utilization of QR codes for ordering in restaurants, while existing for some time, experienced a significant surge in popularity with the onset of the pandemic and the subsequent need for social distancing and enhanced hygiene protocols.

Mr Yum, a mobile ordering and payment platform originating from Melbourne and established in 2018, has recently announced the successful completion of a $65 million USD Series A funding round. This round was spearheaded by Tiger Global.

Investment Details and Key Participants

The funding round attracted participation from a diverse group of investors. These included Commerce VC, VU Venture Partners, Scott Farquhar – co-founder of Atlassian – and Kim Jackson, operating through Skip Capital.

Further investment came from San Antonio Spurs player Patty Mills and the musical ensemble Rüfüs Du Sol. Existing investors, TEN13 and AirTree, also contributed to this round.

Just seven months prior, in April, Mr Yum secured a $8 million USD post-seed round. This latest Series A investment brings the company’s total funding to $74 million, equivalent to approximately $103 million AUD.

Global Expansion and Client Base

Initially founded in Melbourne, Mr Yum has expanded its operational footprint to include offices across Australia, as well as in the United States and the United Kingdom.

The company’s clientele includes prominent venues such as E.P. and L.P. and Strings of Life in Los Angeles, alongside Magic Mike Live Las Vegas and Sahara Las Vegas.

Currently, Mr Yum’s platform supports over 1,500 venues, encompassing not only restaurants but also shopping centers, cinemas, and airports. The platform boasts a user base of 13 million individuals.

Rapid Team Growth and Funding Significance

Over the last 18 months, Mr Yum has experienced substantial growth, increasing its team size from 12 to over 120 full-time employees. These teams are strategically located in Los Angeles, London, Sydney, Brisbane, and the company’s Melbourne headquarters.

According to data from Crunchbase, this funding round represents the third-largest Series A in Australian history. It also marks the largest Series A secured by an Australian startup led by a female founder.

Vision and Core Principles

Kim Teo, co-founder and CEO of Mr Yum, articulated the company’s ambition in an email to TechCrunch: “to build ‘the Shopify for restaurants.’”

The company’s inception stemmed from the observation that “menus hadn’t evolved in hundreds of years,” and that consumers increasingly desire visual representations of their orders. Mr Yum was conceived with the aim of revitalizing menus through high-quality dish photography.

Benefits for Restaurants and Users

The platform’s evolution into mobile QR ordering streamlines operations by eliminating manual tasks such as order taking, payment processing, and bill splitting.

Restaurants utilizing Mr Yum have reported an increase in average order value, ranging from 20% to 40%. The platform also maintains a low monthly merchant churn rate, below 0.5%.

Strategic Foresight and Pandemic Acceleration

Teo highlighted the company’s early investment in QR code technology, noting the integration of QR code readers into the iPhone camera shortly before the platform’s launch. This foresight proved crucial as QR code usage became widespread.

While Mr Yum initially approached businesses with its mobile ordering platform prior to the pandemic, the pandemic significantly accelerated its adoption rate.

Long-Term Impact and Platform Features

Teo believes the shift towards technology in the hospitality and entertainment sectors is enduring. Mr Yum’s platform not only facilitates increased order sizes but also provides valuable marketing and customer analytics tools.

These tools include Boomerang, a loyalty platform enabling venues to create gift vouchers, promotional codes for free items, and percentage-based discounts.

Integration and Partnerships

Mr Yum distinguishes itself through its extensive integration capabilities, which Teo describes as a core strength. The platform integrates with partners like Impact Data, Sprout, and Mailchimp.

Furthermore, it boasts over 75 integrations with point-of-sale, marketing, and payment providers, including Square, Toast, and Deliverect. A partnership with Afterpay in the dining sector and the addition of a pay-at-table function further enhance the platform’s flexibility.

Competitive Landscape and Future Innovation

Mr Yum’s competitive environment varies depending on the geographic region. The company intends to maintain its competitive edge through continuous product innovation, exemplified by features like Group Tabs and Advanced Batching, which optimizes order processing in kitchens and bars.

Rationale for Additional Funding

The decision to raise additional funding shortly after the post-seed round was driven by the evolving landscape of startup investment. Teo explained that achieving market leadership and sustaining long-term growth requires substantial financial resources.