Flipdish, the Irish technology unicorn, is making significant strides towards achieving profitability, according to its co-founder James McCarthy. McCarthy made these remarks as the company unveiled its acquisition of point-of-sale (PoS) firm Jinoby, with the financial details of the deal remaining undisclosed.
With this acquisition, Flipdish aims to expand its product offerings by introducing Flipdish PoS, a restaurant management system that integrates Jinoby’s software platform with its own. Jinoby, headquartered in London, has developed an operating system tailored for restaurants, enabling them to efficiently oversee all aspects of their operations.
McCarthy described the new platform as a “game changer” for both the restaurant industry and Flipdish, as it allows the company to expand beyond food ordering and offer a comprehensive system encompassing inventory management, kitchen operations, activity scheduling, staff rosters, and consolidated reporting.
He expressed his belief that the deal would significantly accelerate growth for Flipdish. To oversee the integration of the two businesses, Jaz Chana has been appointed as Flipdish’s new chief of technology. Chana previously held the same role at Cinch, a British tech unicorn valued at over $1 billion, known for its online used car sales platform.
Established in 2015 by Conor and James McCarthy, Flipdish initially focused on providing software solutions for direct ordering from restaurants through a “white label” app approach. This empowered restaurant owners to retain control over the customer relationship and avoid paying exorbitant fees to online food delivery companies.
The global Point of Sale (PoS) market is expected to experience substantial growth, projected to reach €70.75 billion by 2029 from €25 billion in 2022, as stated by Fortune Business Insights. McCarthy emphasized that Flipdish’s entry into this market establishes it as a significant player in the hospitality sector.
McCarthy expressed his confidence in Flipdish’s ability to attract customers despite the challenging economic climate. However, he acknowledged that the company had implemented cost-cutting measures. Like other tech companies, Flipdish underwent layoffs in late 2022, although the precise number of affected employees was not disclosed.
“While we continue to see positive business performance, we have been prudent in terms of reducing expenses due to the economic climate and the increased cost of borrowing. This is a common situation for all companies at present,” McCarthy explained.
He further stated, “We are edging closer to profitability and are fortunate to have raised a substantial round of funding at an opportune time, ensuring that we still have significant funds available.”
Flipdish achieved unicorn status in early 2022 following a $100 million investment led by Tencent, the Chinese conglomerate.
Although the specific value of the Jinoby deal has not been disclosed, industry sources estimate that Flipdish paid “less than €20 million” to acquire the Croydon-based business.