Per Diem Raises $2.3M to Empower Local Businesses with Subscriptions

Per Diem Secures $2.3 Million to Empower Local Businesses with Subscription Models

Neighborhood restaurants and coffee shops may soon be adopting subscription services, based on the emergence of Per Diem, a newly funded startup. The company recently announced a $2.3 million seed funding round, spearheaded by Two Sigma Ventures.

Building a Local Subscription Ecosystem

According to co-founder and CEO Tomer Molovinsky, Per Diem’s core function is to enable local businesses to “establish their own version of Amazon Prime.” The impetus for developing this platform arose during the pandemic, as businesses sought innovative strategies to bolster customer loyalty and encourage repeat purchases.

The concept of subscriptions isn’t entirely novel. Molovinsky notes that several early adopters were already implementing their own subscription programs. Examples include Norman’s Farm Market, offering a CSA subscription for fresh produce, and IVX Coffee, initially focused on refilling reusable coffee mugs.

From Manual Processes to Streamlined Software

However, these initial programs were often managed using rudimentary methods like spreadsheets or physical Rolodexes. As these programs expanded, maintaining them became increasingly challenging. Per Diem addresses this issue by providing software designed to manage ordering, pickup/delivery logistics, and payment processing.

“Currently, we support both local delivery and shipping options,” Molovinsky explained. “Future development will focus on expanding integrations with various delivery and shipping partners.” The platform’s foundation, however, remains rooted in the brick-and-mortar experience.

Prioritizing the In-Store Connection

Per Diem places significant emphasis on fostering a strong in-store experience for subscribers. This is because the direct interaction between customers and businesses is considered a key differentiator.

“Our goal isn’t to create a system where all food originates from distant warehouses,” added co-founder and CTO Doron Segal. “We aim to facilitate a connection where customers can say, ‘I get my produce from John, and my coffee from Linda.’”

Demonstrated Success with Early Adopters

Early results demonstrate the platform’s effectiveness. Norman’s Farm Market reportedly sold over 500 vegetable box subscriptions within the first month of utilizing Per Diem’s software. IVX Coffee now offers a comprehensive range of subscriptions – including espresso, matcha, and various coffee options – resulting in an average subscriber visit frequency of five days per week.

Expansion and Future Development

While currently focused on the New York market, Per Diem is already collaborating with businesses in Phoenix and Washington, D.C. Geographical limitations are not anticipated.

The company’s long-term vision involves creating increased value for businesses. This could potentially include cross-promotion of different subscriptions or the development of neighborhood-wide subscription programs.

“Our priority is to identify and deliver solutions for our customers,” Molovinsky stated. “We’ve integrated tools like email marketing in response to their needs, and we will continue to enhance our system to strengthen the customer-business relationship over time.”