Eatigo books fresh funding as TripAdvisor doubles down on investment

Eatigo CEO Michael Cluzel at Tech in Asia Singapore 2015 / Photo credit: Tech in Asia

Given the proliferation of online food-delivery options in Asian cities, it’s easy to assume that the restaurant and cafe industry is in prime health.

But according to Bangkok-based startup Eatigo, the food-delivery bikes zipping to and fro all day and night don’t tell the whole story.

While restaurant sales in ASEAN hit US$100 billion in 2015, food establishments typically operate at an “eat-in” capacity of just 35 percent, according to research from Euromonitor. The remaining 65 percent represents a missed opportunity for merchants.

Eatigo is working with restaurant owners to fill those empty tables, offering diners discounted bookings at off-peak times.

It has just banked fresh funding from existing investor, US travel reviews site TripAdvisor. Eatigo didn’t disclose the amount, though the “pre-series C” capital boost takes its total funding to date to over US$25 million. That’s up from US$15.5 million after its October 2016 series B round.

Eatigo co-founder and CEO Michael Cluzel told Tech in Asia that the new funding will be used to further expand in markets “within Southeast Asia and beyond,” though the company’s “key focus remains within Asia.”

The startup – a contestant in the Startup Arena pitch battle at Tech in Asia Singapore 2015 – said it currently serves more than four million users across six countries, following its entry into Hong Kong, India, Malaysia, and the Philippines last year.

In addition to capital, TripAdvisor and its restaurant reservations portal TheFork will assist Eatigo in developing its regional expansion strategy. TripAdvisor claims to have over four million eateries listed on its reviews site, with TheFork serving about 50,000 establishments across 11 countries.

“TripAdvisor has been helpful in optimizing our efficiency, sharing best practices for organizational structures, and cooperating in the commercial field,” said Cluzel.

The expansion into India was achieved via the acquisition of local off-peak bookings app Ressy. “As we grow, our principal development plan is to expand organically,” Cluzel continued. “That being said, we always keep an open mind for any opportunities where market consolidation makes business sense.”

Scaling up, new competitors

Eatigo co-founders Pumin Yuvacharuskul (L), Judy Tan (CL), Michael Cluzel (CR), and Siddhanta Kothari (R) / Photo credit: Eatigo

While Malaysia’s Offpeak is Eatigo’s closest rival regionally, less direct competition also comes from other reservations platforms – such as Singapore’s Chope – and the plethora of on-demand delivery services that encourage diners to stay at home rather than head out to eat.