MadEats, Y Combinator alum, claims to be the first “‘full-stack’ delivery-only startup in the Philippines,” with its own virtual storefront, ghost kitchen, and fleet of drivers. What’s more, they conceptualized and launched their own brands, turning them into a group of delivery-only restaurants.
The company announced today that it has raised $1.7 million in seed funding led by JAM Fund, Crystal Towers Capital, Starling Ventures, MAIN, and Rebel Fund.
Launched in November 2020, MadEats currently has three ghost kitchens: each in Makati, Quezon City, and Manila City. They aim to cover more of the north side of Metro Manila, and eventually open physical storefronts as well.
Prior to founding MadEats, CEO Mikee Villareal told TechCrunch that the team worked for some of the top restaurant corporations in the Philippines, launching, managing, and working on more than 20 restaurant concepts. “At the beginning of the pandemic, we were asked to operate these restaurants for door-to-door delivery due to strict quarantine restrictions,” she said. “The concept of dining has been hit hard and we see a need for our business.”
She added that ghost kitchens have a different cost structure than traditional restaurants, which gives the team the freedom to create product concepts that are more delivery-friendly.
MadEats currently has six brands and is expanding its portfolio: Yang Gang (Korean fried chicken); Chow Time (Chinese takeaway); Fried Nice (fried rice); Coffee Dot; MadBakes (a test kitchen for desserts) and MadMakes for bulk orders, corporate packages, and packaged meals. The company is now adding more brands, including burgers and Japanese food.
MadEatsOS, its in-house toolkit, is what makes the MadEats approach scalable. It includes an automated order routing system that helps ensure orders are fulfilled at the nearest location, and analytics shows which brands and food items are doing well.
The company has its own MadEats goers, and as order demand has increased, it has also worked with third-party logistics providers. It’s available on third-party apps like GrabFood and Foodpanda, but Villareal says more than 50% of its orders come through its own platform, Madeats.co.