Backoffice, a Vilnius-based hospitality operations platform, has secured €150,000 in seed funding to expand its product offerings across Europe. The investment comes from investors FIRSTPICK and Lost Astronaut, marking the startup’s first major capital raise since its 2025 launch.
The company has developed what it describes as an operating system for European hospitality businesses, targeting the administrative and operational challenges that restaurant owners, bakery operators, and other hospitality entrepreneurs face daily. According to Backoffice, the funding will be directed toward broadening the platform’s capabilities and scaling its presence across the continent.
Solving operational friction in hospitality
Backoffice was founded by Erikas Pakėnas, who drew inspiration from observing his mother’s experience running a restaurant and bakery business. “I grew up watching my mum run her restaurant and bakery business: long hours, constant schedule changes, staff shortages,” Pakėnas explained. “The people who build businesses like this love people, love the industry, and are deeply hospitable but they’re often drowning in operational work. Backoffice is an attempt to change that.”
The observation speaks to a common challenge in the hospitality sector. While business owners in restaurants, cafes, and similar establishments excel at customer service and food preparation, many struggle with scheduling, inventory management, payroll, and other backend operations. These administrative tasks often consume disproportionate time and resources, particularly for smaller establishments with limited staff.
European expansion on the horizon
With its fresh capital, Backoffice aims to position itself as a comprehensive solution for hospitality operators across Europe. The startup’s focus on the European market reflects growing demand for localized operational tools that account for regional labour laws, accounting standards, and industry practices.
The seed funding validates an emerging trend in European tech: the rise of vertical software platforms designed specifically for traditionally underserved industries like hospitality. These tools address the gap between enterprise resource planning systems, which are too complex and expensive for small operators, and basic point-of-sale systems, which lack broader operational capabilities.
Context within the broader startup ecosystem
Lithuania has been establishing itself as a growing hub for startup activity, with Vilnius emerging as a centre for software development and technology innovation. The hospitality tech space across Europe remains relatively fragmented, with numerous startups competing to provide unified platforms that simplify back-office functions.
As European restaurants and hospitality businesses increasingly digitise their operations post-pandemic, startups like Backoffice are entering a market where operational efficiency has become a priority for owners seeking to reduce costs and improve service quality. The €150,000 investment suggests investor confidence in both the founding team’s vision and the broader market opportunity for hospitality-focused operational software across Europe.