London-based hospitality CRM app Embargo is targeting Europe-wide growth with its new raise of $3.5 million in funding.

The injection of capital was provided from a group of prominent angel investors as it looks to scale its AI-driven CRM and loyalty platform across Europe.

The round attracted backing from investors including Paul Statham (founder of Condeco), Christo Georgiev (founder of myPOS), Hampton Finance (the Chantler family fund behind Meadow Foods), Mike Branney (founder of Oh Polly), Stephen Zinser, and Carl Christian Reiner.

Founded in 2018 by Frederick Szydlowski and Tsewang Wangkang, Embargo offers a plug-and-play platform tailored for small and medium-sized hospitality businesses (SMEs), including coffee shops, bakeries, and restaurants. The startup helps operators drive customer retention, repeat sales, and digital engagement across in-store, collection, and delivery channels through loyalty programs and CRM tools that are traditionally only accessible to large restaurant chains.

“Our mission is to level the playing field for hospitality SMEs keen to grow their revenues and scale – we do that by giving them access to the kind of tools typically reserved for global enterprises,” said co-founder Frederick Szydlowski. “This investment is not just a vote of confidence in our product and growth to date, but also in the scale of the opportunity ahead. With strong foundations, a growing international footprint, and a clear product roadmap, we’re perfectly positioned to become the go-to platform for hospitality businesses worldwide.”

In a fragmented European market where SMEs represent around three quarters of hospitality businesses, the accessibility of such tools has lagged behind the US.

Embargo is aiming to bridge that gap, offering what investor Oliver Chantler of Hampton Finance called a “sophisticated but easy to use” platform.

“Embargo is closing a critical information gap in the food and hospitality sector, and we are excited to be part of its journey,” said Chantler.

Embargo plans to use the fresh capital to further develop its AI and machine learning engine, which supports personalised marketing and retention strategies for merchants. It also intends to ramp up B2B sales and marketing, especially in existing markets, before launching in new geographies from 2026. Recent integrations with major US-based payment and POS providers such as Square and Lightspeed hint at a broader global strategy.

“For the first time, we have the budget to fully leverage our product-market fit and significantly accelerate sales and marketing,” said co-founder Tsewang Wangkang. “We aim to more than double our growth year-over-year while maintaining a healthy business model and avoiding short-term artificial spikes that don’t deliver long-term value.”

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