Pepper, a New York-based technology platform for independent food distributors, has acquired Alima, a Y Combinator-backed startup that built ordering and procurement software for small food distributors in Latin America. The deal, announced on Tuesday with no disclosed financial terms, brings Alima’s two cofounders into Pepper’s leadership team and extends the company’s push into AI-driven product content and data infrastructure for an industry that still runs largely on phone calls, faxes, and personal relationships.

Jorge Vizcayno, Alima’s chief executive, will lead Pepper’s product content platform and data infrastructure, which uses AI to match and enrich product catalogues at scale. Blanca Espinosa, Alima’s chief marketing officer and cofounder, will head customer implementation, applying AI tooling to the onboarding process that has historically been one of the most friction-heavy parts of selling software to food distributors.

Two companies, one thesis

The acquisition is small in isolation but revealing in what it says about where vertical software for food distribution is heading. Pepper and Alima were built on the same premise: that independent food distributors, who collectively account for more than two-thirds of food distribution in North America and handle over $1.4 trillion in annual sales, are woefully underserved by technology.

Alima, founded in 2021, tackled the problem from the Latin American side, where the gap is even wider. More than 85 per cent of B2B food suppliers and distributors in the region lack digital sales capabilities, according to the company’s own estimates. Alima built an ordering platform for small and mid-sized distributors, focusing initially on fresh produce procurement in Mexico. The company went through Y Combinator’s Winter 2022 batch and raised $1.5 million in seed funding from Soma Capital, YC, The Dorm Room Fund, and angel investors.

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Pepper, meanwhile, has grown into a broader platform covering ordering, sales and marketing, accounts receivable, and embedded payments for US-based food distributors. The company has raised $99 million across three rounds, most recently a $50 million Series C in February led by Lead Edge Capital, with participation from ICONIQ, Index Ventures, Greylock, Harmony Partners, and Interplay. It now serves more than 500 distributors representing approximately $30 billion in annual gross merchandise volume.

The AI angle

The strategic logic of the deal centres on product content, the sprawling, fragmented catalogues that food distributors must manage across thousands of SKUs from hundreds of suppliers. In food distribution, product data is notoriously messy: item descriptions vary between suppliers, packaging formats differ by region, and pricing changes frequently. Pepper has been building AI systems to match and enrich this data automatically, and Vizcayno’s experience building similar infrastructure for Latin American distributors makes the acquisition a talent and technology play as much as a market expansion one.

Espinosa’s role is equally telling. Customer implementation, the process of getting a distributor onto a new technology platform, is where many vertical SaaS companies lose deals. Distributors often have limited technical staff, legacy systems that resist integration, and operations that cannot afford downtime during a migration. Pepper is betting that AI-assisted onboarding can compress what has traditionally been a months-long process, and Espinosa’s background in customer acquisition at Alima positions her to lead that effort.

This is Pepper’s second acquisition in seven months. In August 2025, it acquired Kimelo, a distribution toolset that included a restaurant supply ordering app. The pace suggests Pepper is consolidating a fragmented market of small vertical tools into a single platform, a playbook familiar from other industries but still relatively early in food distribution.

A $1.4 trillion market, still on paper

The broader context is that food distribution technology remains in its early innings despite its enormous addressable market. Independent distributors are the backbone of the food supply chain, connecting farms and manufacturers to the restaurants, grocery stores, and institutions that feed people. Yet the industry’s technology adoption lags far behind comparable sectors like logistics, retail, and financial services.

Pepper’s investor list, which includes Index Ventures and Greylock, signals that serious venture capital is flowing into the space. The $50 million Series C in February valued the company at an undisclosed figure but positioned it as the category leader in a market where no dominant platform has yet emerged. The Alima acquisition adds Latin American domain expertise and a bilingual founding team to a company that will likely need to expand beyond the US to justify its funding trajectory.

For Alima’s founders, the framing is pragmatic. Vizcayno described the acquisition as the most honest continuation of Alima’s journey. Whether that honesty reflects strategic alignment or the practical reality that a $1.5 million seed-stage startup in a difficult Latin American market found a faster path to impact inside a better-funded platform is, ultimately, the same thing said two different ways.