Fintech Firm inKind Raises $450M for Restaurants
Austin-based fintech company inKind has raised $450 million to fund up to 10,000 restaurants. The company's platform provides capital to restaurants by allowing consumers to pre-purchase dining credits, which can be used for meals and rewards. The model offers restaurants an alternative funding stream while creating a new form of customer loyalty program.
- The funding model provides restaurants with upfront capital in exchange for food and beverage credits, which inKind buys at a discount and then sells to diners through its app. This structure avoids taking on traditional debt or giving up equity. - To date, inKind has provided more than $600 million in funding to over 6,000 restaurants, including notable partners like Union Square Hospitality Group, José Andrés Group, and MINA Group. - The company's CEO and co-founder, Johann Moonesinghe, is a serial entrepreneur who was also an early angel investor in companies such as Uber, Twilio, and Allbirds. - High-profile investors in the company include Jay-Z's investment firm, Marcy Venture Partners, Yahoo co-founder Jerry Yang, and all four members of the band Metallica. - For consumers, the platform functions as a dining wallet where they can purchase credits and receive a bonus, often getting 20-25% in additional value to spend at participating restaurants. - The latest $450 million funding round was led by Magnetar Capital. Before securing significant outside capital, the founders, including CEO Johann Moonesinghe and his late brother Rajan, largely self-funded the company, even cashing out their home and retirement accounts. - Beyond financing, inKind offers restaurants a technology system called Sherlock, which assists with labor management and monitoring profit margins. - The company has a stated commitment to provide $250 million in funding to restaurant businesses led by minority operators.
