Restaurant fintech Toast's valuation approaches $5 billion
Investors poured a fresh $400 million into Toast following a year in which the payment firm more than doubled revenue from its network of restaurant clients.
Bessemer Venture Partners, TPG, Greenoaks Capital and Tiger Global Management led the funding round, with participation from Durable Capital Partners LP, TCV and other funds and accounts. The round brings Toast's valuation to nearly $5 billion.
Boston-based Toast reports company revenue increased 109% in 2019 as "tens of thousands of new restaurants joined the Toast community." As part of that successful year, Toast also completed its first acquisition in adding StratEx to the company to bolster its human resources and payroll software technology.
"As a result of our tremendous growth and commitment to the restaurant industry, we have continued to see a significant amount of demand from the investor community," Chris Comparato, Toast's CEO, said in a Friday press release.
Toast will use the money to fuel product design, hardware and software advancements, and financial products aimed at improving restaurant liquidity.
“Just as the retail industry weathered disruption from e-commerce over the past two decades, restaurateurs now face shifting consumer expectations and a changing landscape of tech players who threaten to erode restaurant brands,” Kent Bennett, partner at Bessemer Venture Partners, said in the release. “Toast wants to partner with the restaurant community to level the playing field and strengthen this nearly trillion-dollar industry."
Toast launched its platform in 2013 for restaurants of all sizes, providing technology for restaurant owners to connect with employees, business operations and customers.