O:8:"stdClass":11:{s:7:"version";s:4:"1.11";s:10:"identifier";s:12:"post-1356562";s:8:"language";s:5:"en-US";s:5:"title";s:58:"Pepper raises $50 million to expand digital commerce tools";s:13:"documentStyle";O:8:"stdClass":1:{s:15:"backgroundColor";s:7:"#fafafa";}s:6:"layout";O:8:"stdClass":4:{s:7:"columns";i:7;s:5:"width";i:1024;s:6:"margin";i:100;s:6:"gutter";i:20;}s:10:"components";a:2:{i:0;O:8:"stdClass":4:{s:4:"role";s:6:"header";s:6:"layout";s:17:"headerPhotoLayout";s:10:"components";a:2:{i:0;O:8:"stdClass":4:{s:4:"role";s:5:"photo";s:6:"layout";s:28:"headerPhotoLayoutWithCaption";s:3:"URL";s:41:"bundle://AdobeStock_218419627-scaled.jpeg";s:7:"caption";O:8:"stdClass":3:{s:6:"format";s:4:"html";s:4:"text";s:186:"Pepper said it'll use the new funding to deepen digital commerce, automation and AI across ordering, sales execution and financial workflows. | Image credit: littlewolf1989 - Adobe Stock";s:9:"textStyle";O:8:"stdClass":1:{s:8:"fontName";s:17:"AvenirNext-Italic";}}}i:1;O:8:"stdClass":4:{s:4:"role";s:7:"caption";s:4:"text";s:186:"Pepper said it'll use the new funding to deepen digital commerce, automation and AI across ordering, sales execution and financial workflows. | Image credit: littlewolf1989 - Adobe Stock";s:6:"format";s:4:"html";s:9:"textStyle";O:8:"stdClass":5:{s:8:"fontName";s:17:"AvenirNext-Italic";s:8:"fontSize";i:16;s:8:"tracking";i:0;s:10:"lineHeight";i:24;s:9:"textColor";s:7:"#4f4f4f";}}}s:8:"behavior";O:8:"stdClass":2:{s:4:"type";s:8:"parallax";s:6:"factor";d:0.8;}}i:1;O:8:"stdClass":4:{s:4:"role";s:9:"container";s:6:"layout";O:8:"stdClass":3:{s:10:"columnSpan";i:7;s:11:"columnStart";i:0;s:20:"ignoreDocumentMargin";b:1;}s:5:"style";O:8:"stdClass":1:{s:15:"backgroundColor";s:7:"#fafafa";}s:10:"components";a:19:{i:0;O:8:"stdClass":5:{s:4:"role";s:5:"title";s:4:"text";s:58:"Pepper raises $50 million to expand digital commerce tools";s:6:"format";s:4:"html";s:9:"textStyle";s:13:"default-title";s:6:"layout";s:12:"title-layout";}i:1;O:8:"stdClass":5:{s:4:"role";s:6:"byline";s:4:"text";s:40:"By Mark Brohan | Feb 24, 2026 | 11:33 AM";s:6:"format";s:4:"html";s:9:"textStyle";s:14:"default-byline";s:6:"layout";s:13:"byline-layout";}i:2;O:8:"stdClass":5:{s:4:"role";s:4:"body";s:4:"text";s:175:"

Pepper has raised $50 million in new funding as it seeks to accelerate digital commerce adoption in a sector still dominated by manual processes and fragmented systems.

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The round was led by Lead Edge Capital. Existing investors ICONIQ, Index Ventures, Greylock, Harmony Partners and Interplay also participated. Pepper is a technology provider serving independent food distributors. The company did not disclose a valuation.

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Pepper positions its platform as an overlay to existing enterprise resource planning (ERP) systems rather than a replacement. The company said it integrates with more than 70 ERP platforms. That allows distributors to modernize customer-facing commerce and internal operations without undertaking large-scale system migrations.

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In summer 2025, Pepper acquired Kimelo, a provider of vertical distribution software serving the foodservice industry. That came more than a year after Pepper raised $30 million in funding for AI and advertising improvements.

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December online grocery sales end 2025 on record note

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Pepper said it will use the new funding to deepen digital commerce, automation and artificial intelligence across ordering, sales execution and financial workflows for independent distributors. Many of them continue to rely on phone, fax and disconnected software even as customer expectations shift toward self-service and real-time visibility.
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CEO Bowie Cheung said the investment will support expanded product development. It will also support tighter integration with the legacy ERP systems that dominate food distribution.
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“We’re focused on removing friction across the entire order-to-cash lifecycle,” Cheung said.
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He pointed to opportunities to automate routine workflows while improving accuracy and speed for both distributors and their customers.
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The company said more than 500 distributors use its software. That represents about $30 billion in annual gross merchandise volume and supports more than 100,000 active foodservice operators across the United States, according to Pepper.
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Independent distributors account for more than two-thirds of food distribution in North America, representing more than $1.4 trillion in annual sales, according to company data. Despite that scale, digital adoption across the segment has lagged national distributors, which have invested heavily in ecommerce portals, data-driven pricing and integrated financial tools.
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Pepper’s product suite includes tools for online ordering, sales representative workflows, automated order processing and embedded payments. The company said proceeds from the Series C round will be used to expand its Storefront, Sales Hub, Order Agent and Finance Hub products, introduce additional AI-driven automation features, and scale integrations across the broader food distribution technology stack.
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Aaron Darr, a principal at Lead Edge Capital, said independent distributors operate at significant scale but remain technologically siloed, creating demand for shared digital infrastructure purpose-built for the sector.
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Founded in 2014, Pepper is headquartered in New York. Lead Edge Capital manages more than $5 billion in assets and invests in software and internet-enabled businesses globally.
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Sign up for a complimentary subscription to Digital Commerce 360 B2B News. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at mark@digitalcommerce360.com. Follow him on Twitter @markbrohan. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube.
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Pepper raises $50 million to expand digital commerce tools

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