Pepper Acquires Alima to Bolster AI-Driven Food Distribution Platform

Pepper, a technology platform for independent food distributors, has acquired Alima, a Y Combinator-backed startup specializing in ordering and procurement software for small food distributors in Latin America. The acquisition, announced on Tuesday, aims to enhance Pepper’s AI-driven product content and data infrastructure, addressing a sector traditionally reliant on manual processes like phone calls and faxes.

Leadership Changes and Strategic Alignment

As part of the deal, Alima’s CEO, Jorge Vizcayno, will lead Pepper’s product content platform and data infrastructure, focusing on using AI to match and enrich product catalogues. Blanca Espinosa, Alima’s co-founder and CMO, will head customer implementation, leveraging AI tools to streamline the onboarding process for new distributors.

Addressing a Gap in the Food Distribution Market

The acquisition highlights a significant gap in technology adoption within the food distribution industry. Independent distributors, handling over two-thirds of food distribution in North America and more than $1.4 trillion in annual sales, have historically been underserved by technology solutions. The Next Web reports that Alima identified an even wider gap in Latin America, where over 85% of B2B food suppliers and distributors lack digital sales capabilities.

Alima’s Background and Focus

Founded in 2021, Alima initially focused on fresh produce procurement in Mexico, building an ordering platform for small and mid-sized distributors. The company participated in Y Combinator’s Winter 2022 batch and secured $1.5 million in seed funding from Soma Capital, YC, The Dorm Room Fund, and angel investors. Business Wire details that this acquisition brings Alima’s expertise to Pepper’s broader platform.

Pepper’s Growth and Funding

Pepper has expanded into a comprehensive platform covering ordering, sales, marketing, accounts receivable, and embedded payments for US-based food distributors. The company has raised $99 million in funding, including a $50 million Series C round in February led by Lead Edge Capital, with participation from ICONIQ, Index Ventures, Greylock, Harmony Partners, and Interplay. Pepper currently serves over 500 distributors, representing approximately $30 billion in annual gross merchandise volume.

The Role of AI in Product Content Management

A key driver of the acquisition is the challenge of managing complex product catalogues in food distribution. These catalogues often contain thousands of SKUs with inconsistent descriptions, varying packaging, and frequent price changes. Pepper has been developing AI systems to automatically match and enrich this data, and Vizcayno’s experience in Latin America will contribute to this effort. The Next Web highlights the importance of this technology in optimizing product data.

Improving Customer Onboarding with AI

Customer implementation, a traditionally friction-heavy process for vertical SaaS companies, is another area where AI will play a crucial role. Distributors often face challenges with limited technical staff, legacy systems, and the need to avoid operational disruptions during migration. Pepper aims to use AI-assisted onboarding to significantly reduce the time and effort required for distributors to adopt the platform.

Strategic Acquisitions and Market Consolidation

This is Pepper’s second acquisition in seven months, following the purchase of Kimelo in August 2025. This pace suggests a strategy of consolidating the fragmented market of specialized tools into a single, integrated platform, a trend observed in other industries. One News Page reports that the acquisition reflects a shared vision to create a comprehensive platform for distributors.

A Large Market Ripe for Disruption

Despite its substantial size—a $1.4 trillion market—food distribution technology remains relatively underdeveloped. Independent distributors are vital to the food supply chain, but their technology adoption lags behind other sectors like logistics and retail. The investment from firms like Index Ventures and Greylock indicates growing venture capital interest in this space. The acquisition of Alima adds Latin American expertise and a bilingual team to Pepper, positioning the company for potential expansion beyond the US.

Vizcayno views the acquisition as a natural progression for Alima, allowing it to amplify its impact within a larger, well-funded organization.