Ellko, a Dublin-based start-up technology firm, has won a €3.5 million (£2.75 million) deal with French drinks distribution group Tafanel.Tafanel, which has 6,000 client outlets in France, has also invested €2 million to take a 20 per cent stake in Ellko, which was founded by Mr Brian Spain.

Ellko has developed a Web-based electronic management system that enables cafes and bars to use electronic terminals for a range of business functions.

Its software, developed together with Irish firm Softco, enables people management, procurement, document management and communications from terminals in client premises.

The product has been tested in Dublin and France for more than a year and Tafanel has now signed a deal to put Ellko's terminals in 1,500 outlets throughout France.

Operated by a swipe card, the software and terminal management system will bring greater efficiencies to Tafanel's business, according to Mr Spain. Because it can be accessed on an internet browser, management and staff can access data anywhere, he said.

Initially, it is estimated between 15,000 and 30,000 French waiters and chefs will use the new terminals. But the company is already testing in a number of Dublin pubs, including the Globe.

Ellko's Web-based application is hosted from Colt Telecom's internet data centre in Dublin.

Ellko has received €4 million funding from Tafanel and private individuals to date. It may raise more cash later this year to fund its development in other markets.

The British, French and Belgian are the most advanced markets for this type of solution, according to Mr Spain. Ellko charges a monthly rental for its terminals and gets a 1 per cent or 2 per cent transaction fee on supply-based transactions.

The company is based in Dublin and Paris, and will employ 30 people by the summer, said Mr Spain.