German food tech Milano Vice scores €8.34M to expand its delivery-first restaurant model

Berlin-based Milano Vice, a food technology company, has secured $9M (approximately €8.34M) in a Series A round of funding. 

The investment was led by Coefficient Capital, with contributions from True, Geschwister Oetker, and Speedinvest. 

Additional support comes from prominent figures in the food technology and delivery sector, such as Ole Strohschnieder, co-founder of Just Spices; David Brunier, co-founder of Flash Coffee; Christian Gaiser, co-founder of Numa, and founding investor Fabian Wittleben CG Partners. 

The funds will help Milano Vice to expand its business and scale its operations both within Germany and internationally.

A virtual restaurant franchise

Founded in 2021 by Rudolf Donauer and Dennis Murselovic, former colleagues at Delivery Hero, Milano Vice claims to have pioneered a digitally-powered, delivery-first pizza restaurant concept.

Since its launch in January 2022, the company has sold over 1 million pizzas in various German cities and partnered with 60 businesses.

According to the company, many German food businesses face financial challenges due to underutilised kitchens, inflation, and increasing costs. Milano Vice calculates that most restaurant kitchens are used only 40 per cent of the day, leading to extended payback periods for restaurant infrastructure investments.

Milano Vice addresses these challenges faced by traditional food establishments by utilising underutilised kitchens to prepare and deliver pizzas, enabling partner businesses to boost sales.

The model has proven successful, with one bakery in Berlin experiencing a sales increase from €20,000 to €95,000 per month through Milano Vice collaboration. 

Milano Vice reports that small businesses collaborating with them have experienced a fourfold increase in both sales and profits.

Co-founder Donauer says, “We always wanted to create something that would have a positive impact on food entrepreneurs, and the work we’ve been doing with Milano Vice is in service of this vision.”

“We are building the restaurant of the future with a pizza brand that has a best-in-class delivery system, tastes great, and also helps small food businesses and restaurants grow their income.”

The proprietary technology

Milano Vice uses artificial intelligence and computer vision to monitor the quality of freshly prepared pizzas to maintain high standards. Additionally, the company has introduced a new online ordering platform for a direct-to-consumer experience, incorporating gamification to foster customer loyalty.

Arpon Ray, Partner at Coefficient Capital says, “We have been looking for innovative models in food delivery and were immediately impressed with the capital-efficient business model Rudolf and Dennis created.”

“We think their focus on using proprietary technology will be a major differentiator, and their approach to brand building will resonate with today’s consumer.”

Milano Vice opened its first pop-up location in Berlin (Münzstraße 11, 10178 Berlin) in October 2023, allowing customers to order whole pizzas and individual slices. 

The company aims to expand its brand through a multichannel strategy, focusing on small-format locations and alternative real estate. 

Sven Wiszniewski, Investment Manager at Geschwister Oetker Beteiligungen KG says, “The strong team of Milano Vice created a modern pizza brand that focuses on tasty pizza of high quality and with a culinary twist, as well as digitalising and optimising the daily business of many smaller restaurants and owner-led food joints.”

“We are excited about the opportunity of bringing together happy customers and successful food entrepreneurs.”

Brief about the investors supporting Milano Vice

Launched in 2019, Coefficient Capital is a VC firm specialising in consumer brands that integrate digital and physical channels. Partnering with high-growth, digitally-powered brands, the firm brings expertise from supporting major names in CPG and technology.

Geschwister Oetker Beteiligungen KG, a globally active company with sales exceeding €2.5B and over 8,000 employees, operates internationally in divisions such as Sparkling Wine, Food, Specialty Chemicals, and Hotel Management.

True is a consumer-focused investment and innovation advisory firm. Engaging with startups and brands like Ribble and Unmind through its early-stage VC fund, True is a strategic partner for corporations like Marks & Spencer. Investing from its third private equity fund, it commits £10M-£100M to shape the future of the retail and consumer industry.