Berlin-based foodtech unicorn Choco has achieved what many startups can only dream of: leveraging artificial intelligence to boost its growth and unlock billions in sales. What captivates me most about their story is not just the numbers, but how they rewired their operations and culture to make this leap. Let’s unpack their transformation and discuss what other founders can learn from Choco’s AI-driven pivot.
Choco’s AI-driven evolution
Founded to simplify the food supply chain, Choco connects restaurants with suppliers via a digital platform. Its early success demonstrated the platform’s ability to streamline manual ordering processes. But as competition intensified, CEO Daniel Khachab knew Choco needed a new edge. That edge turned out to be artificial intelligence.
OrderAgent was their breakthrough product. Launched in late 2023, this AI-powered procurement tool uses algorithms to optimize orders between restaurants and suppliers, minimizing errors and reducing unnecessary interactions. By 2025, it became the company’s biggest driver of revenue, propelling Choco to process €3.8 billion in gross merchandise value. That’s staggering growth for any company, let alone in such a niche market.
Beyond one flagship product, Choco embedded AI in its internal operations. Salespeople received a companion in the form of a machine-learning-driven mobile CRM tool. The result? Faster client acquisition and retention, with acquisition costs dropping by an impressive 69%. Across the board, efficiency improved drastically, and the company scaled in a way that manual operations or traditional automation tools couldn’t have supported.
Lessons for startup founders
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AI adoption needs cultural buy-in
Khachab didn’t just roll out AI tools and hope for the best. The entire Choco team underwent upskilling to understand and integrate AI into their workflows. This wasn’t just a shift in technology but in mindset. Employees were expected to approach every problem with AI solutions in mind, creating a culture of curiosity and adaptability. -
Start with high-impact pain points
Choco didn’t try to “AI everything” at once. Instead, they identified their most crucial bottlenecks. Manual procurement processes and onboarding inefficiencies were clear areas where AI could shine. Too often, startups attempt to fit AI where it’s unnecessary. Choco avoided that pitfall by keeping their focus narrow. -
Iterate based on results
Like any other product, AI tools should evolve based on user feedback and performance analytics. While the launch of OrderAgent was a critical milestone, its improvements over the past two years demonstrate how iteration brings real value.
How to implement AI in your startup
Embarking on your own AI journey? Here’s a straightforward guide:
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Assess your needs
AI should solve specific problems, not be implemented for its own sake. Whether streamlining operations, reducing churn, or improving decision-making, define the outcomes you want. -
Research tools and platforms
Explore tools like OpenAI, Hugging Face, or sector-specific AI tools. Don’t forget to tap into off-the-shelf platforms before opting for expensive custom solutions. -
Train your team
Implementing AI requires a team that understands how to leverage its tools. Invest in workshops or online courses to get everyone on board. -
Integrate step by step
Start small, with a few use cases. Monitor outcomes and optimize the approach before scaling further. Test before replacing existing processes fully. -
Monitor metrics and adjust
Use analytics to measure the tangible outcomes of AI and tweak models as needed. Scaling doesn’t mean switching into autopilot.
Common mistakes and how to avoid them
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Diving in without strategy
AI requires clear objectives. A scattershot approach often wastes resources and frustrates teams. Build a roadmap for AI adoption aligned with measurable goals. -
Underestimating human input
Even with AI, humans add unique judgment and creativity. Balance automation with meaningful human oversight to avoid over-reliance. -
Ignoring scalability
An AI experiment that works in one department may break when scaled. Ensure your data infrastructure and models are built to handle long-term growth. -
Failing to manage ethical challenges
AI can introduce biases if the underlying data is flawed. Audit tools regularly and put safety mechanisms in place to address these issues proactively.
Why Choco stands out
Their transformation isn’t just a success story. It’s a template for others in vertical SaaS or B2B industries to rethink their technology strategies. Beyond heavy investments in AI tools, Choco’s cultural shift and relentless focus on scaling intelligently are lessons all entrepreneurs should take to heart.
These steps helped a Berlin-based foodtech startup not only survive in a competitive industry but thrive. It’s proof that the future of business lies in building cultures ready to embrace change, experimentation, and growth.
The full story is compelling. Dive deeper into how Choco grew into one of the fastest-scaling unicorns in Europe with its AI-powered logistics approach by reading their case study on Sifted. As we head into a future brimming with AI applications, the takeaways from Choco can shape the next generation of groundbreaking startups.
FAQ
1. What is Choco, and what does it do?
Choco is a Berlin-based foodtech unicorn that connects restaurants with suppliers through a digital platform aimed at streamlining food ordering and supply chains. Explore Choco’s innovative platform
2. How did Choco integrate AI into its operations?
Choco embedded AI across its operations, launching products like OrderAgent for procurement and an AI-powered CRM mobile app for sales efficiency and better customer retention. Read about Choco’s AI transformation
3. What is the OrderAgent tool, and how does it work?
OrderAgent is an AI-powered procurement solution optimizing orders between restaurants and suppliers, reducing errors and manual interactions. It became Choco's main source of revenue in 2025, transforming its business. Learn more about OrderAgent’s impact
4. How much gross merchandise value (GMV) has Choco processed with AI?
By 2025, Choco processed €3.8 billion in gross merchandise value through its AI-powered logistics platform, driven by innovations like the OrderAgent. Discover Choco’s financial achievements
5. What cultural shift did Choco implement to embrace AI?
Choco retrained its team to adopt an AI-first mindset, encouraging employees to use AI tools in solving business challenges and fostering a culture of innovation and adaptability. Read about Choco’s cultural transition
6. What improvements did AI bring to Choco's sales operations?
AI-driven CRM tools for sales helped Choco achieve faster client onboarding, improved customer retention, and cut acquisition costs by 69%. Learn about Choco’s sales efficiency improvements
7. How did Choco start its AI-driven transformation?
Choco began integrating AI into its operations in early 2023, focusing on training employees and exploring AI tools like recommendation engines and machine-learning algorithms. Delve into Choco's AI reset journey
8. What were the main challenges Choco faced during this transformation?
The company found it resource-intensive to upskill employees and balance the use of AI with maintaining human customer service interactions. These were key challenges during their shift to AI-first operations. Understand the challenges of AI adoption at Choco
9. Why is Choco’s story significant for other startups?
Choco’s AI-driven success demonstrates how vertical SaaS companies can leverage AI for operational efficiency and exponential growth, presenting a template for other startups. Learn more about Choco’s startup lessons
10. Where can I find the full case study about Choco’s AI transformation?
You can read Miriam Partington’s full case study on Choco’s AI-powered transformation and its journey to unlocking billions in sales on the Sifted website. Read the full case study on Sifted
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.