In Japan, a country renowned for its culinary excellence and technological advancements, a startup called Dinii is making waves in the food service industry. Founded in 2018 by Mao Yamada and Kazuki Otomo while they were still students at the University of Tokyo, Dinii has quickly established itself as a key player in transforming how restaurants operate. The company recently raised $48 million in funding, led by Bessemer Venture Partners and Hillhouse Investment Management, marking a significant milestone as it represents Bessemer’s first investment in a Japanese startup.
The inspiration behind Dinii came from Yamada and Otomo’s firsthand experiences working in restaurants. They noticed that many establishments relied on outdated ordering and delivery systems, which often hindered efficiency and customer satisfaction. Rather than imposing additional hardware costs on restaurants, Dinii introduced a cloud-based point-of-sale (POS) platform that utilizes devices the restaurants already own. This innovative approach has allowed Dinii to carve out a niche in a competitive market, focusing on offering a comprehensive suite of services that extend beyond basic payment processing.
Yamada envisions a future where Dinii can provide a wide array of services, including employee management, reservations, and delivery solutions. The startup aims to enhance the restaurant experience for both owners and customers by leveraging its existing technology to facilitate smoother operations. Building on its initial success with the POS system, Dinii is set to expand its financial services offerings, which include cashless payment solutions and eventually back-office operations like inventory management and salary payouts.
One of the standout features of Dinii is its focus on the unique challenges faced by restaurant employees, many of whom are part-time workers with irregular income. Jorel Chan, Dinii’s chief of staff, highlighted the difficulties these employees encounter with traditional salary payment schedules. To address this, Dinii plans to introduce daily payment options for employees, helping them gain financial stability and reducing the stress associated with delayed paychecks.
The landscape of the restaurant industry in Japan is ripe for disruption. Many traditional establishments still rely on on-site POS systems provided by companies like Toshiba and NEC, which can be costly and lack the flexibility needed for modern dining experiences. Dinii’s cloud-based system allows restaurants of all sizes to gather valuable customer data, understand menu item popularity, and engage with customers through targeted marketing efforts. This capability not only enhances customer relations but also boosts revenue potential.
Dinii’s integration with Line, a popular messaging app in Japan, further enriches its data collection capabilities. By analyzing customer preferences and behaviors, restaurants can craft personalized experiences that keep diners coming back. With more than 900,000 restaurants in Japan, the potential market for Dinii’s services is substantial, especially considering that the food service market is projected to grow significantly over the next few years.
Currently, Dinii serves approximately 3,000 restaurants, representing a mere 0.5% market penetration. This statistic illustrates the enormous growth potential that lies ahead for the company. As Yamada noted, with over 20 million registered users making food orders through its platform, Dinii is positioned to capitalize on a wealth of data that can drive future innovations and services.
With its recent funding, Dinii plans to expand its operations beyond the major urban centers of Tokyo and Osaka into other cities like Nagoya and explore opportunities in Southeast Asia, including markets in Indonesia, Malaysia, Singapore, and Thailand. The startup’s workforce has already grown from 30 to 130 employees in just a year, and further hiring is anticipated as it scales its operations.
The journey of Dinii exemplifies the intersection of technology and the food service industry, highlighting how innovative solutions can address real-world challenges. As the company continues to grow and evolve, it may very well become a model for other startups aiming to transform traditional industries in Japan and beyond. The support from prominent investors like Bessemer underscores the confidence in Dinii’s potential to emerge as a leader in the SaaS and fintech sectors within the restaurant landscape.