Digitory’s $500,000 Bet: Can AI-Powered Restaurant Tech Become the Next SaaS Growth Story?

Bengaluru-based restaurant technology startup Digitory has raised $500,000 in a pre-Series A round from angel investor Tejas Paresh Lodaya. Founded in 2016, the company offers an AI/ML-driven operating system for restaurant profitability, including POS automation and inventory management. The fresh capital is expected to fuel product expansion and market penetration, positioning Digitory to tap into India’s fast-growing food-tech and SaaS ecosystem.

India’s restaurant industry is undergoing a silent technological transformation. As margins shrink and competition intensifies, restaurant owners are increasingly turning toward automation, data-driven decision-making, and AI-powered systems to stay profitable.

Into this shifting landscape steps Digitory, a Bengaluru-based startup aiming to become the operating system for restaurant profitability. With a fresh $500,000 pre-Series A funding round, the company is preparing to scale its AI-driven solutions across the food and beverage ecosystem.

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The Funding Move: A Strategic Pre-Series A Boost

Digitory has secured $500,000 from angel investor Tejas Paresh Lodaya, marking a key milestone in its growth journey.

Key funding details

Parameter	Details
Startup	Digitory
Headquarters	Bengaluru
Funding round	Pre-Series A
Amount raised	$500,000
Lead investor	Tejas Paresh Lodaya
Founded	2016
Founder	Shivaprakash S. Mogali

The funding will likely be used to:

• Expand product capabilities.
• Scale customer acquisition.
• Strengthen AI and automation features.
• Enter new regional markets.

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The Core Product: An Operating System for Restaurant Profitability

Digitory positions itself not as a simple POS vendor, but as a comprehensive restaurant operating system.

Core product stack

Product Layer	Function
AI/ML engine	Predictive analytics and decision-making
POS systems	Billing and transaction management
Inventory tools	Stock tracking and cost optimization
Automation tools	Workflow and operational efficiency

The startup’s focus is on unit economics, helping restaurants:

• Reduce wastage.
• Improve pricing strategies.
• Optimize inventory cycles.
• Increase per-outlet profitability.

Expert Insight: “Restaurant tech is moving from billing software to full-stack operating systems. The winners will be those who directly impact margins.”

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Why Restaurant Tech Is Heating Up

India’s food and beverage industry is expanding rapidly, but profitability remains a major challenge.

Key industry pressures

• Rising ingredient costs.
• High rental expenses.
• Increasing competition.
• Delivery platform commissions from platforms like Zomato and Swiggy.

This has created demand for data-driven restaurant management systems.

Restaurant tech adoption drivers

Driver	Impact
Margin pressure	Need for cost optimization
Multi-outlet expansion	Need for centralized systems
Delivery integration	Complex order flows
Data analytics	Better pricing and demand forecasting

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The Global Opportunity: Restaurant SaaS as a High-Growth Sector

Globally, restaurant tech has become a major SaaS opportunity.

Global trends

Trend	Market Impact
Cloud-based POS	Rapid adoption across chains
AI-driven analytics	Better demand forecasting
Automation tools	Lower labor dependency
Subscription models	Predictable recurring revenue

Major global players have already demonstrated the potential of the category:

• Toast
• Square (Block)
• Lightspeed

India’s market remains fragmented and underpenetrated, creating room for startups like Digitory.

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Digitory’s Strategic Positioning

Unlike traditional POS vendors, Digitory is positioning itself as:

• A profitability-focused platform.
• An AI-driven operational system.
• A decision-support tool for restaurant owners.

Competitive positioning

Category	Traditional POS	Digitory Model
Core focus	Billing	Profitability optimization
Analytics	Basic reports	AI-driven insights
Inventory	Manual tracking	Automated forecasting
Pricing strategy	Static	Dynamic, data-driven

This positioning could help Digitory:

• Increase customer stickiness.
• Build recurring SaaS revenue.
• Expand into adjacent services.

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India’s Restaurant Tech Market: The Next SaaS Frontier

India’s restaurant sector is:

• Highly fragmented.
• Dominated by small and mid-sized operators.
• Rapidly digitizing.

Market characteristics

Factor	Impact on Tech Adoption
Rising food delivery	Need for integrated systems
Multi-brand cloud kitchens	Need for centralized control
Cost pressures	Demand for automation
Younger entrepreneurs	Faster tech adoption

This creates a strong environment for restaurant SaaS platforms.

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Capital Efficiency: Why the $500K Round Matters

While $500,000 may seem small compared to large VC rounds, early-stage SaaS companies often prioritize capital efficiency.

Typical use of pre-Series A funding

Area	Strategic Goal
Product development	Improve AI capabilities
Sales expansion	Acquire more restaurant clients
Team hiring	Build engineering and sales teams
Market entry	Expand into new cities

If Digitory can:

• Achieve strong unit economics.
• Demonstrate customer retention.
• Scale recurring revenue.

…it could attract larger Series A or growth-stage funding.

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The Bigger Picture: AI as the Profit Engine of Restaurants

The restaurant tech stack is evolving:

Old model

• Billing software.
• Manual inventory tracking.
• Reactive decision-making.

New AI-driven model

• Predictive inventory.
• Dynamic pricing.
• Automated workflows.
• Real-time profitability insights.

Digitory is attempting to position itself at the center of this shift.

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What Comes Next for Digitory

Key growth triggers to watch:

• Expansion into major metro cities.
• Partnerships with restaurant chains.
• Integration with delivery platforms.
• New AI-driven features.

If execution is strong, Digitory could:

• Become a major restaurant SaaS platform.
• Expand into fintech or supply chain solutions.
• Emerge as a potential acquisition target.

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Trading Platforms for Indian Investors

For investors tracking tech and startup-linked listed companies:

India-Based Platforms

• Zerodha
• Upstox
• Angel One
• Groww

Global Platforms

• Interactive Brokers
• eToro

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⚠️ DISCLAIMER: We Are Not Financial Advisors This article is for informational and educational purposes only and should not be considered financial or investment advice. Startup investments and equity markets involve significant risk. Always conduct your own research or consult a certified financial advisor before making investment decisions.