Embargo, a hospitality tech scaleup from London, has secured €3 million from key investors in the UK, US, and Europe. Participants in the funding round include Paul Statham (Condeco founder), Christo Georgiev (myPOS founder), Hampton Finance from the Chantler family (Meadow Foods founders), Stephen Zinser, Carl Christian Reiner, along with Oh Polly and Mike Branney.
Founded by Frederick Szydlowski and Tsewang Wangkang, Embargo offers a comprehensive digital loyalty wallet, CRM, and ordering platform for coffee shops, restaurants, and bakeries. The platform features the Embargo Portal CRM, with tools for analytics, reporting, sales, and marketing, as well as the Embargo Wallet, Embargo Web Ordering, and Embargo Tipping. The company aims to provide hospitality SMEs with tools typically available to large enterprises.
Frederick Szydlowski stated that the mission is to give hospitality SMEs the tools they need to grow and scale, which are usually accessible only to large businesses. This investment represents a strong endorsement of their product and growth potential, positioning Embargo as a key platform for global hospitality businesses.
Embargo, used by nearly 3,000 venues, is prominent in the UK, Poland, and Western Europe, processing over 13 million transactions and stamps. Its revenue has tripled since mid-2023, maintaining the same team size.
Oliver Chantler from Hampton Finance highlighted Embargo’s capacity to fill a critical gap for SMEs in effectively capturing and analyzing customer data, boosting repeat revenue for many merchants.
With major brands like McDonald’s and Starbucks investing in loyalty solutions, there is growing demand for affordable platforms for independents and small chains, which represent 75% of hospitality businesses.
The funding will enhance Embargo’s AI and machine learning capabilities for personalized marketing and retention strategies, alongside boosting B2B efforts locally before international expansion next year. This follows partnerships with US-based Square and Lightspeed.
Tsewang Wangkang mentioned that the new budget will accelerate sales and marketing, aiming to double growth annually while sustaining long-term value, avoiding shortsighted spikes.
Paul Statham noted looking for founders capable of scaling startups, recognizing Embargo’s timely solution for SMEs. The achieved milestones serve as a strong foundation for global expansion.
Embargo is active in two countries and has a presence in over ten, with plans for further international growth within 24 months.