Toast raises $400M in Series F funding at $4.9 billion valuation to create a one-stop management tool for restaurants
Toast, an all-in-one point-of-sale and restaurant management platform for businesses in the food service and hospitality space, announced today it has raised $400M Series F funding round to reinvest in its technology platform, and make enhancements targeted to the evolving needs of the restaurant industry. The round, which now values the company at $4.9 billion, was led by Bessemer Venture Partners, TPG, Greenoaks Capital, and Tiger Global Management with participation from Durable Capital Partners LP, TCV, funds and accounts advised by T. Rowe Price Associates, G Squared, Light Street Capital, Alta Park Capital, and others.
With this new funding, Toast is well-positioned to fundamentally reshape the $900B restaurant industry for the better. Following a period of tremendous growth – during which revenue increased 109% in 2019 – this fundraise solidifies Toast as the leading restaurant management platform for restaurants of all sizes.
Founded in 211 by Aman Narang, Jonathan Grimm, and Steve Fredette, the Boston, MA-based Toast’s technology platform combines restaurant POS, front-of-house, back-of-house and guest-facing technology with a diverse marketplace of third-party applications. The company helps brands like José Andrés’ ThinkFoodGroup streamline operations, increase revenue and deliver superior guest experiences. With this new funding, Toast is well-positioned to fundamentally reshape the $900B restaurant industry for the better.
Focused on empowering restaurants of all sizes to compete on a level playing field with global brands, Toast has quickly become the go-to partner for the restaurant industry, from entrepreneurs opening their first restaurant to enterprise brands scaling across hundreds of locations. During the course of 2019, revenue increased 109 percent as tens of thousands of new restaurants joined the Toast community.
“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,” said Chris Comparato, CEO at Toast. “As the clear platform leader in the restaurant space, we are excited to use this investment to extend our capabilities and drive a bigger impact for the restaurant industry.”
Toast will invest the funding proceeds from this fundraise into its technology platform to meet the evolving needs of the restaurant industry including:
• New products designed to both deepen restaurateurs’ connections with guests and increase restaurant revenue;
• Hardware and software investments to increase speed of service, streamline the guest experience, and reduce operational costs;
• Capabilities to improve the restaurant employee experience, reduce employee turnover, and address the industry’s pressing labor challenges; and,
• Financial products that provide quick and reliable access to funding to help restaurateurs grow their businesses.
“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,” said Kent Bennett, partner at Bessemer Venture Partners. “Toast wants to partner with the restaurant community to level the playing field and strengthen this nearly trillion dollar industry. We’re thrilled to continue to support this incredible team in 2020 and beyond.”