Pizza delivery company Slice secured a new $43 million Series C funding on Tuesday from global investment firm KKR & Co (NYSE: KKR).
On Thursday, KKR's co-head of next-generation technology, Jake Heller, explained the rationale behind backing the company amid a very competitive market.
Slice focuses on independent pizza chains and is considered a "category-defining" company, Heller said on "Bloomberg Markets: European Close." The company believes it can better help independent pizza joints compete in a "digital world for a digital consumer."
Slice is still a small upstart so by default it's behind the game against major players like GrubHub Inc (NYSE: GRUB) and Uber Technologies Inc (NYSE: UBER). However, Slice is positioning itself to target the more than 50,000 independent pizza chains, the majority of which are outside dense metropolitan areas.
Why It's Important
Slice is able to provide a service to these independent joints at a "fraction of a cost" of major national players, Heller said. What starts as a "better value and better solution" for restaurants translates to better prices.
Many of these independent chains also lack the digital capabilities to compete against national giant chains. Slice is able to fulfill the technological needs built specifically for pizza restaurants.
While the COVID-19 pandemic has certainly proven to be a tailwind for a company like Slice, it's situated for "real long term differentiation," he said.