Vagabond Vending, a leading provider of route management and data analytics tools to vending machine operators, announced that it closed more than $3M across two related financing rounds, the first being led by early stage venture capital firm Middleburg Capital Development (MCD) and the second being led by IrishAngels. Blu Venture Investors and other individual angels participated in both rounds. In addition, Vagabond has engaged with MCD and 1st Source Capital Corporation on a broad ranging financing agreement that enables Vagabond to provide needed capital to operators deploying new technologies.
Vagabond Vending, which operates an expansive integrated communications network of machines, is transforming the vending industry with its intuitive Vending Management Software (VMS), breadth of hardware solutions, and unique financing capabilities. The platform includes web and mobile apps that allow vending businesses to interface directly with their machines in real-time, which allows them to determine best-selling products and what machines need to be serviced– all from the warehouse or while watching their kid's soccer game. Simultaneously, the team can ready trucks for the next day, route them as efficiently as possible, and ensure cash accountability at all times. The end result is a leaner, smarter operation with net profit margins of nearly four times the industry average, according to company sources.
"With its unique hardware and software solutions, we believe Vagabond is well-positioned to disrupt the vending industry," remarked Gale Bowman, Managing Director of IrishAngels. "We were impressed with the leadership team and the fact that they had run several vending routes before starting the business to learn firsthand about the pain points of a vending operator."
"For the last five years, Vagabond's goal has been to bring more profit-driving technology into the reach of all vending business owners as simply and affordably as possible. With this round of financing, Vagabond will expand its communications network to provide vending operators with more options and technology that they could otherwise not afford," says founder and CEO Michael Lovett.
Operators who employ vending management software technology tend to be more profitable because it enables their staff to make efficient decisions about merchandising, driver scheduling, and truck routing while also streamlining the financial administration of the business itself. Incorporating cashless capabilities onto machines further increases profits because consumers spend more when they are using their credit cards. Deploying these two technologies together has proven to substantially maximize profits.
Juan Jorquera, Vagabond's COO adds, "Vagabond engages with operators in a consultative manner to help determine which technologies make the most sense for their operations. We can now finance large deployments and work hand in hand with our members' teams during implementation. That's a game changer for operators who are already low on time and resources."
