Why We Invested: Pacto
The restaurant industry is undergoing a digital transformation globally, and restaurants represent a significant yet underserved market in this shift. With 3 million dining establishments in Latin America alone, restaurants play a crucial role in emerging economies. However, they face multiple challenges with their overall software, inventory management, online presence, and cash-based operations, hindering their growth and adoption of digital solutions, with no accessible solution available to them.
By providing a holistic SaaS-based POS and e-commerce solution, Pacto aims to empower restaurants and turn them into fully-fledged, digitally enabled businesses.
Targeting restaurants comes with its own set of challenges. Most restaurant software is outdated, inefficient and fragmented, and relies on manual operations that are tedious and extremely time-consuming. Nevertheless, these businesses often find it harder to grasp the value of technological solutions and are more resistant to change compared to larger, more established companies. Acquiring restaurants as customers can be challenging and requires a tailored approach.
Additionally, certain aspects of the business model, such as e-commerce integration and payment processing, may prove to be more difficult to implement for restaurants. The competitive landscape is also very saturated, with multiple companies competing for a share of the market.
Pacto's SaaS platform provides a comprehensive PoS and e-commerce solution, catering to restaurants' critical pain points, including e-commerce access, digital marketing, inventory management, customer analytics, and more. Unlike traditional PoS systems, Pacto's fully mobile solution allows businesses to leverage existing smartphones, eliminating the need for additional hardware.
The platform makes it easy for merchants to onboard and offers a digital storefront and a mobile point-of-sale. The target clientele includes cash-only business owners seeking to digitize as well as those who already accept digital payments seeking to establish their brands and expand their sales through digital channels.
This all-in-one platform is expected to be adopted by around 1,500 establishments across the country, offering features such as automated payment reconciliation, real-time reporting on sales and inventory, and dynamic menus with "order and pay" functionality via QR codes, resulting in increased efficiency and customer satisfaction. Now, restaurants will benefit from a digitally integrated PoS and payment system.
Pacto also aims to leverage B2B partnerships with financial institutions to reach a broader scope of clients and improve user retention. Recently, Pacto joined forces with Getnet, the merchant acquiring division of Grupo Santander, and announced the launch of a new digital solution for restaurants aimed at streamlining and expediting sales for restaurants and bars in Mexico.
Additionally, Pacto's unique approach to partnering with established players sets it apart from traditional competitors. By tapping into existing infrastructure and distribution channels, Pacto can potentially reach a wider range of clients at a fraction of the cost, ultimately enhancing its growth prospects and value proposition.
The success of any early-stage startup lies in its founding team, and Pacto's team is second to none. Ryan Croft, co-founder and CEO, previously co-founded TransitScreen, a successful SaaS company, and served as COO and CCO, gaining experience in advising startups and contributing to the entrepreneurial ecosystem. He is a strong believer in the untapped potential of restaurants in Latin America, leveraging his knowledge of the region's culture and dynamics to drive growth.
Gordon Whitehouse, co-founder and CTO, has a strong background in building startups and leading product development teams. He has experience in managing digital platforms and marketing, working with notable companies such as Rosetta and Apple, making him an asset for product development and marketing strategies. Finally, Rodrigo Kuri, co-founder, has extensive experience in leadership roles in prominent companies such as Citibanamex and Banco Santander.
Restaurants represent a vital segment of the emerging market economy, and the interest in digitizing their operations is growing rapidly. Pacto's unique approach to simplifying the adoption of e-commerce positions it as a valuable ally for restaurants, while also offering significant data generation capabilities. This data can prove invaluable for CPGs, convenience store operators, and businesses seeking to digitize the traditional restaurant supply chain.
We are thrilled to be joining Pacto in their journey to empower restaurants in Latin America with a comprehensive PoS and payment solution, while driving digital transformation across the region!