When Sari Adbo and co-founder Faisal Kanji launched hungerhub, a workplace meal delivery platform for companies, in 2018, they assumed that venture capital would be a key part of the startup’s growth story. But as the business began attracting customers, Adbo realized there was another way to build.

Instead of chasing investment to accelerate growth, the Toronto-based startup focused on winning customers—companies looking to provide employees with meals from local restaurants—and using their feedback to continuously refine the product. The approach wasn’t fast or easy, but it gave the company the flexibility to invest in its technology, build a culture aligned with its values, and ultimately negotiate an acquisition on its own terms.

Here, Abdo shares how bootstrapping helped him build a more resilient company.

Growing, One Customer at a Time

In its first two years, the startup grew at a steady rate, increasing its customer base between 28 and 33 per cent annually, with a team of fewer than 10 employees. “Your first customer, your second customer, your third customer tells you so much about your product,” says Abdo. Early on, he realized that customers cared less about a slick user interface and more about getting their food on time. So while many of their competitors outsourced deliveries to third-party providers, Abdo decided to build its own delivery operation to ensure the quality and reliability of hungerhub’s service.

That direct connection with clients is one of the biggest advantages of bootstrapping, says Matt Robertson, director of venture growth at MaRS Discovery District. “It forces founders to validate their business with customers instead of investors. Every dollar comes from someone who believes enough in your product to pay for it, and that feedback loop often leads to a stronger company.”

Bottom line: Bootstrapped companies tend to grow more slowly than venture-backed startups. But that gradual growth enables entrepreneurs to calibrate operations in response to customer demand. 

Turning Operations into a Competitive Advantage

Managing logistics also created operational advantages. By developing its own route optimization technology, the company reduced travel time and lowered delivery costs compared with the one-to-one delivery routes typically used by third-party providers. The startup was also amassing valuable data, which made them more attractive for acquisition. 

Owning the logistics gave hungerhub a competitive edge. “The service layer is a good example of a more defensible product,” says Robertson. “Anyone can build software, but they’re not going to be able to build that service layer as easily.”

Bottom line: Tech experts often talk about the importance of building a defensible moat—advantage over competitors by delivering a valued service, accumulating data, and cementing a trusted reputation. The key is to enhance your product’s value proposition and improve the customer experience.   

Staying Flexible Through a Crisis 

In early 2020, hungerhub was preparing to raise its first round of funding when the COVID-19 pandemic hit. Business came to an abrupt halt, deliveries stopped almost overnight, and the company was forced to suspend operations.

The founders faced an existential challenge. They watched as competitors that had completed funding rounds shift direction under pressure from investors eager to protect growth and revenue, with some moving away from office catering entirely. But hungerhub didn’t have to answer to anyone. As Abdo says, “Because it was just me and my co-founder making all the decisions, we were able to wait.” 

They took advantage of the lockdown to strengthen the business itself. The team not only rebuilt parts of its platform to support future growth but also developed a dedicated mobile app—something “none of our Canadian competitors had,” Abdo explains, which helped the company improve the user experience and further honed their competitive advantage. 

Next, hungerhub zeroed in on the film and television industry, which was still operating under strict COVID-19 protocols and required individualized meal delivery for cast and crew—something the platform was already built to handle. The approach paid off: Within a few months, they resumed deliveries and expanded operations into Vancouver. By March 2021, its monthly revenue had doubled compared to the previous year, and between 2020 and 2022, the company grew by close to 700 per cent, Abdo says.

Bottom line: Resilience isn’t necessarily about reinventing your business. It’s about finding creative ways to deliver your core value to the right customers. 

Building Beyond the Gig Economy

Abdo and Kanji were committed to building a sustainable business that supported their values. While many food delivery platforms rely on gig workers with unpredictable schedules, hungerhub built a more structured system for its drivers, offering guaranteed shifts scheduled in advance rather than relying entirely on on-demand labour. 

The company also avoided the rapid hiring cycles common among venture-backed startups. Instead of aggressively increasing headcount to chase growth targets, hungerhub hired gradually and only when revenue supported it—a pace that allowed the team to strengthen operations before expanding further. “We were hiring one person a month for 20 months,” explains Abdo. As the business grew during the pandemic, the company tripled its workforce while expanding into new markets—all without external investment.

That kind of disciplined growth requires founders to think carefully about why they need external capital in the first place, says Robertson. “Why give away equity just to have a bigger balance sheet?” he argues. “You really have to think about how you’re putting that money to work.”

Bottom line: Consider what you actually need to build a stable operation—and whether capital is the right tool to get there.

Negotiating from a Position of Strength

By the time hungerhub entered acquisition discussions in 2025, the company had grown from serving one city to 10 across Canada, expanded its network from 100 restaurant partners in 2022 to more than 450 by early 2026, and was making upwards of 20,000 weekly meal deliveries—an increase of more than 300 per cent. Consistent month-over-month revenue growth and high customer retention had made the business an attractive acquisition target.

That success gave Abdo and Kanjji something many founders don’t have during exit negotiations: the ability to walk away. Without outside investors pushing for a quicker exit or a different outcome, “we were able to dictate our price to make sure that we got what we wanted,” Abdo says. The flexibility gave them the time to find a partner that aligned with their long-term vision. In February 2026, hungerhub announced it was merging with HUNGRY, a U.S.-based workplace food platform.

For Abdo, the biggest takeaway is that fundraising shouldn’t be the first measure of success. “Fundraising is not the only validator of your work,” he advises. “Find a way that you can pay your bills, pay your people, grow and be profitable before you start looking for that injection of cash.”

For many startups, external investment is essential to scaling quickly or commercializing new technologies. But Abdo’s experience suggests that founders should first ask what they hope that capital will help them achieve—and whether they’re already building something customers are willing to pay for.

Canadian Business has partnered with MaRS Discovery District to showcase innovation in Canadian startups.