TouchBistro has successfully raised $228.6 million over seven funding rounds, establishing itself as a significant player in the restaurant management POS system market. The company is venture-backed by some of the best tech VCs in the industry.
Keep reading to explore the intricacies of TouchBistro's fundraising journey and the investors backing this innovative platform.
What Is TouchBistro?
TouchBistro, founded in 2010, is headquartered in Toronto. The company was established by Alex Barrotti and is known for its innovative iPad POS system designed specifically for the foodservice industry.
TouchBistro's platform is used in over 100 countries, powering more than 12,000 restaurants. The system helps restaurants increase revenue, enhance guest experiences, and make informed business decisions.
With a team of 201-500 employees, TouchBistro continues to grow, offering a comprehensive suite of tools for restaurant management, from front of house to back of house operations.
How Much Funding Has TouchBistro Raised?
- Series A
- Amount Raised: $6 million
- Date: April 2015
- Lead Investors: Kensington Capital Partners, Relay Ventures, Difference Capital, JUST EAT
- Motivation Behind the Round: To support global expansion and enhance the integration of online orders with the restaurant POS system.
- Series B
- Amount Raised: $17 million
- Date: October 2016
- Lead Investors: BDC IT Venture Fund
- Motivation Behind the Round: To amplify growth by focusing on sales and marketing, building out the POS platform, and integrating new features.
- Series C
- Amount Raised: $12.1 million
- Date: May 2017
- Lead Investors: Napier Park Financial Partners, Recruit Holdings
- Motivation Behind the Round: To enhance the mPOS product suite and expand into new markets.
- Series D
- Amount Raised: $72 million
- Date: June 2018
- Motivation Behind the Round: To expand product offerings and core services, and to explore strategic acquisitions.
- Series E
- Amount Raised: $120 million
- Date: Late 2019
- Lead Investors: OMERS Growth Equity, OMERS Ventures, JPMorgan Chase
- Valuation at Round: Approximately $500 million pre-money
- Motivation Behind the Round: To expand product offerings and core services, and to explore strategic acquisitions.
- Growth Financing
- Amount Raised: $110 million
- Date: November 2022
- Lead Investors: Francisco Partners
- Motivation Behind the Round: To finance product development, strategic M&A plans, and target more upmarket customers while navigating economic uncertainties.
Total Amount Raised: $337.1 million
Current Valuation: Approximately $500 million (~estimated)
Key Investors
- Francisco Partners
- Details: Francisco Partners is an American private equity firm specializing in investments in technology and technology-enabled businesses. They provided $150 million CAD in growth financing to TouchBistro.
- Investment Focus Areas: Technology, FinTech, Payments
- Notable Investments: GoodRx, Verifone, BeyondTrust
- OMERS Ventures
- Details: OMERS Ventures is the venture capital arm of OMERS, one of Canada's largest defined benefit pension plans. They invest in early to growth-stage technology companies.
- Investment Focus Areas: Technology, HealthTech, FinTech
- Notable Investments: Shopify, Hopper, Hootsuite
- JPMorgan Chase
- Details: JPMorgan Chase is a global financial services firm offering investment banking, financial services for consumers and businesses, financial transaction processing, asset management, and private equity. They participated in TouchBistro's Series E funding round.
- Investment Focus Areas: Financial Services, Technology, Consumer Businesses
- Notable Investments: Robinhood, Plaid, Toast
- Napier Park Financial Partners
- Details: Napier Park Financial Partners is a financial services and FinTech-focused growth equity firm. They led TouchBistro's Series C funding round.
- Investment Focus Areas: Payments, Banking and Lending, Insurance and Benefits
- Notable Investments: AvidXchange, Billtrust, VPay
- Recruit Holdings Co, Ltd
- Details: Recruit Holdings is a global company with over 45,000 employees and more than 200 brands, including Hot Pepper Gourmet. They co-led TouchBistro's Series C funding round.
- Investment Focus Areas: HR Technology, Housing and Real Estate, Dining
- Notable Investments: Indeed, Glassdoor, SimplyHired
What's Next for TouchBistro?
TouchBistro is poised to capitalize on significant opportunities by moving upmarket and targeting higher-end small to medium-sized businesses. With over 16,000 restaurants in more than 100 countries, the company aims to expand its product offerings and explore strategic acquisitions, enhancing its position in the market.
Future fundraising efforts may focus on sustainable growth, leveraging the $150 million CAD recently secured from Francisco Partners. This funding will support product development and strategic M&A plans, positioning TouchBistro to navigate economic uncertainties and increase its market share.
However, challenges such as economic uncertainty, competition from larger companies like Toast and Lightspeed, and the ongoing impact of the COVID-19 pandemic may pose hurdles. TouchBistro must continue to innovate and adapt to maintain its growth trajectory and meet evolving market demands.
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