German startup Torg has closed an oversubscribed €2.7 million seed funding round for its AI-powered platform, which helps food service and private label buyers connect with food and beverage suppliers.
Torg features a database of more than 100,000 verified suppliers, over ten times more than are present at major trade fairs such as Anuga and SIAL. The platform streamlines supplier discovery, communication, negotiation, and financing to make the sourcing process as simple as possible. It features several product categories, including a vegan category with 282 suppliers.
“We tried Torg and in two weeks, we received 15 quotes from top manufacturers, most below our target price”
In just two minutes, buyers can set up a product request and distribute it to hundreds of manufacturers. The supplier database features profiles, certifications, product capabilities, and contact information for the manufacturers; Torg claims that handling these large unstructured datasets would be impossible without AI technology.
The round was led by Connect Ventures, with participation from existing investor FoodLabs and new investors Sondo, Ventures Together, Sameer Singh, and Jonas Meynert. Torg will use the funding to further develop the platform, expand its supplier database, and develop more intuitive tools for buyers.
“Meaningful business connections”
Founders Hans Kristian Furuseth, Ben Holdham, and Rita Kerbaj decided to develop Torg after experiencing difficulties with sourcing suppliers in their previous careers. They aim to enable buyers to focus on their core responsibilities by streamlining the most time-intensive part of the work.
“Buyers have few good ways of finding new manufacturers. They rely on trade fairs which occur once a year and where less than 10% of global suppliers exhibit, or on desktop research, sifting through unverified websites. The market is much bigger than most buyers realize,” said Furuseth, who is the CEO of Torg. “We democratize private label products by opening up the market, creating more transparent supply chains, and putting less known, quality suppliers on the map. Our goal is to create meaningful business connections for both sides of the market. In a way, we’re Tinder for sourcing.”
Jonas Meynert is the co-founder of virtual kitchen startup Lanch, which has successfully used Torg to find suppliers. He was so impressed by the platform that he decided to invest in it.
“We tried sourcing the traditional way by using agencies and consultants, but after three months, we had only gotten three quotes, all above our target price,” he said. “We tried Torg and in two weeks, we received 15 quotes from top manufacturers, most below our target price. Not only did we achieve great results, but due to Torg’s efficient tools, we decided against hiring a dedicated sourcing team and now do all our sourcing through Torg.”
