Hospitality tech provider Embargo has been awarded a £350k UK Smart Grant by the government to develop an AI model for its Customer Relationship Management (CRM) and loyalty platform.
The funding will be used to build the London company’s first fully AI-driven platform for SMEs in the foodservice sector. By capturing and analysing a vast range of customer data – including cross-referencing what they purchase and how often against the time of day, day of the week, weather and more – the model will help businesses enhance their marketing, pricing, loyalty, and communication strategies.
Founded in 2017 by Fryderyk Szydlowski and Tsewang Wangkang, Embargo is used by nearly 2,500 bakeries, coffee shops, restaurants, dessert parlours, and delis across the country as a plug-and-play digital loyalty wallet and CRM platform. East Anglian chain Two Magpies Bakery joined the app in 2022, while other case studies listed on the Embargo website include London-based coffee and bakery brands Brickwood, Knot Pretzels, and Joe Blake’s.
Embargo reported a 200% increase in revenue in the past two years, saying it has achieved this growth without any increases to its team or costs. It has also just exceeded 11 million transactions on its app, with 50% of those coming since January 2024.
“We are about to reach half a million app transactions monthly, which is a great testimonial to the work we put it in to make our solution easy to use and absolutely best in class for both businesses and their customers,” commented Szydlowski.
Co-founder Wangkang explained that Embargo’s mission is to help the tens of thousands of hospitality SMEs to tackle the major challenges they continue to face. “Increases to running costs thanks to rising wages, inflation and the incoming National Insurance changes make this ever-more important – the sector needs help,” he said.
“We are beyond excited to receive this grant and take our mission to the next level. SMEs deserve the highest level of technology in an easy-to-use, scalable form. We have already shown that our platform has major impact on our customers’ growth – our AI development will now make it even more powerful, giving businesses tools they never had,” added Wangkang.
Besides the UK Smart Grant, Embargo is also finalising its funding round for the Enterprise Investment Scheme (EIS) – a government-driven initiative designed to stimulate investment in early-stage businesses through venture capital, which allows up to 30% income tax relief on investments.
Embargo’s funding will be used to fuel its market penetration, revenue growth, and further develop the platform. Szydlowski noted that the firm’s cash-efficient strategy and product-led growth has already attracted investors. “We are looking to oversubscribe it given the interest we have received and use the fact that we still have EIS allocation left,” he revealed. “There’s a lot of work ahead of us but we couldn’t be more excited. Hospitality SMEs need powerful, easy-to-use solutions more than ever and we are here to provide them. It is time to accelerate.”
Need inspiration to take new strategic directions and help maximise sales at your retail or foodservice business? Check out our free-to-read Bakery Retail Guide, which highlights recent developments, best practices and key insights across various operational disciplines including marketing, store design, staff training, technology, routes to market and more.
No comments yet