Singapore-based Cata, a merchant app software platform for food and beverage and retail businesses, raised US$5.3 million in seed funding led by Portage Ventures, according to Cata. The round also included White Star Capital, 468 Capital, FoodLabs, FJ Labs, Rally Cap, and Iterative.
Cata plans to use the funding to expand overseas and add artificial intelligence features to its platform. Germany has been selected as the company’s first new market. The funding round closed less than a year after Cata’s launch.
Cata’s customers include Guzman y Gomez, the fast-casual restaurant chain. According to Cata, Guzman y Gomez more than doubled its digital sales after deploying Cata’s app across 23 outlets in Singapore.
Cata’s software platform originated inside Flash Coffee, a coffee chain backed by startup investors. Flash Coffee invested more than US$10 million into the system before Cata was spun out as an independent company. The platform has already processed millions of transactions, giving Cata operating history at launch.
Cata’s platform allows quick-service restaurant operators to consolidate fragmented digital services and reduce dependence on third-party delivery apps, which typically charge steep commissions. The merchant-owned app model provides businesses with direct access to customer data and enables loyalty programs and personalized marketing.
The broader market opportunity reflects a challenge in mobile app adoption: many mobile app categories lose more than 80% of users on the first day. Merchant-owned apps address common reasons for app abandonment, including weak engagement and poor habit formation. Cata has indicated that wellness and retail segments are on its product roadmap, as offline businesses in those categories increasingly seek greater control over digital sales channels.