Berlin-based Torg, a B2B startup digitising product sourcing to bring buyers and suppliers together, has raised an oversubscribed €2.7M Seed round to transform food & beverage sourcing with its AI-powered platform.
The funding will fuel the company’s platform development, supplier database expansion, and the creation of more “intuitive” tools to streamline sourcing processes.
Investors supporting Torg
The investment was led by Connect Ventures. Existing investor FoodLabs and new investors, including Sondo, Ventures Together, Sameer Singh, and Jonas Meynert (co-founder of Lanch), also participated.
Sitar Teli, Partner at Connect Ventures, says, “The drivers are clear – consumers are demanding transparency, certifications, and lower prices for the food they purchase and grocers and wholesalers are looking to own more of their supply chain in response.”
“Torg enables this by creating the first digital sourcing platform for private label food and beverage, bringing sourcing decades ahead from where it is now.”
Co-founder of Lanch and angel investor, Meynert, adds, “At Lanch, we were so impressed with Torg that I had to invest myself. 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.”
“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.”
Digitising product sourcing
Hans Kristian Furuseth, Ben Holdham, and Rita Kerbaj founded Torg in 2022 based on their experience in e-commerce, foodtech, and consulting at companies like Zalando and Delivery Hero.
They created Torg to solve sourcing inefficiencies they encountered in their previous roles, developing a digital platform that simplifies supplier discovery, communication, negotiation, financing and verification for private label and foodservice projects.
Torg aims to streamline sourcing processes, allowing buyers to focus on core responsibilities with the help of technology. The company connects buyers with over 100,000 verified food & beverage suppliers in Europe.
In 14 months, Torg claims to have used machine learning and AI to build the largest database of food and beverage suppliers, surpassing major food fairs like Anuga and SIAL in manufacturer coverage by over tenfold.
The platform efficiently collects and analyses data to identify, verify, and vet suppliers, providing complete supplier profiles and capabilities. This level of data management is made possible by recent advancements in AI technology.
Co-founder Furuseth, says, “Buyers have few good ways of finding new manufacturers. They rely on trade fairs which occur once a year and where less than 10 per cent of global suppliers exhibit, or on desktop research, sifting through unverified websites. The market is much bigger than most buyers realise.”
“We democratise 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.”
Till Hoelzer, Principal at FoodLabs, adds, “Torg is revolutionising food and beverage procurement and the numbers speak for themselves: over half of Torg buyers receive quotes 30 per cent below their target price.”
“Their platform not only reduces operational burdens but also enables the launch of superior and cheaper private label products, meeting the growing demands of consumers.”
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