SAN FRANCISCO -- Cantaloupe Systems announced that it has completed its third and largest round of funding, securing $12.4 million managed by Foundation Capital and Global Environment Fund. The wireless vending solutions provider, based here, has raised approximately $18.4 million since its inception in 2002.
Cantaloupe said it will use the proceeds to support an aggressive growth plan. This includes more investment in research and development, new products such as Seed Cashless and Seed Enterprise, exploring acquisition opportunities, hiring talent and offering new pricing structures to vending operators.
"We are extremely pleased with the results of our capital-raising effort," said Cantaloupe chief executive Mandeep Arora. "In this difficult economic environment, it is gratifying to have two of the most highly respected investment firms believe in our mission, our business model, our staff and the future of the vending industry."
Ashmeet Sidana, general partner of Foundation Capital, said Cantaloupe will define the SaaS (software as a service) category. "Cantaloupe was the first to market with an innovative solution for vending management and their product is a complete end-to-end solution that saves vending machine operators money from day one."
GEF chief executive Jeffrey Leonard added, "We saw the value proposition in Cantaloupe's product when we first invested four years ago. Our additional investment is a testament to our conviction that Cantaloupe is well positioned to be the leading technology solutions provider helping all customers in the vending industry cut costs, remain competitive and reduce their energy usage."
According to Cantaloupe, sales of Seed, the embedded device in a vending machine that transmits data, increased three and a half times in 2009 over 2008, bringing total unit sales over 50,000. Revenue for the same period also increased, growing from $2.5 million in 2008 to $9 million last year. The company expects sales to continue to grow in 2010.
"Cantaloupe is positioned for phenomenal growth this year," said chief marketing officer Anant Agrawal. "It is our job to ensure our customers have the best solutions possible while our competitors have just begun to tap the surface of wireless vending; we have eight solid years of focused experience. We continue to innovate, creating valuable solutions like merchandising, routing and cashless instead of resting on Seed alone - complacency is not an excuse."
Founded in 1995, Foundation Capital is a venture capital firm targets opportunities in "cleantech," consumer Internet and infrastructure; telecommunications and networking; and enterprise software and on-demand services. Global Environment Fund (Chevy Chase, MD) is a private equity firm founded in 1990 that invests in clean energy, environmental services and sustainable forestry throughout the world. It manages about $1 billion in private equity.