SpotOn Raises $300M, Will Buy Appetize
SpotOn has raised $300 million that will be used to acquire the digital and mobile commerce platform Appetize.
The Series E round was led by Andreessen Horowitz (a16z), with continued participation from current investors, including DST Global, 01 Advisors, Dragoneer Investment Group, Franklin Templeton, and Mubadala Investment Company, as well as new investors Wellington Management and Coatue Management. Advisors Douglas Merritt, CEO of Splunk, and Mike Scarpelli, CFO of Snowflake, also made individual investments. The funding comes four months after SpotOn's Series D and increases its valuation from $1.875 to $3.15 billion.
“This investment enables SpotOn to significantly increase its total addressable market, with an end-to-end platform for restaurants and retail business of all types and sizes,” said David George, general partner at Andreessen Horowitz. “The acquisition is a natural fit given the companies’ complementary technology and shared focus on market-leading customer support.”
SpotOn's deal to acquire Appetize digital and mobile commerce platform follows on the heels of other high profile IPOs and acquisitions in the restaurant tech space. Online ordering company Olo held its IPO in March. On the M&A front, Punchh was acquired by Par Technology and Restaurant365 Bought Compeat. Just last week, First Watch filed to go public, and Toast filed for an $100M IPO last month.
Expanding to Mid-Sized Markets
Following the acquisition, SpotOn is positioned to rapidly expand its reach to serve the middle market. SpotOn has hundreds of account executives embedded in communities across the country who will bring Appetize’s world-class technology to thousands of regional entertainment centers, stadiums, colleges, and universities in these communities.
Max Roper, CEO at Appetize, will continue running the business as part of SpotOn. By bringing the two companies together, businesses from a major league ballpark to a local clothing boutique will have access to modern, intuitive, cloud-based technology that delivers exceptional customer experiences from one trusted provider, Roper said.
The acquisition leverages SpotOn’s SMB expertise and Appetize’s enterprise acumen to focus on a broader market that is beneficial for all clients. SMBs will benefit from robust, scalable technology that can grow with them, and enterprise clients can leverage complementary products, such as sophisticated loyalty programs and expanded marketing capabilities, to increase engagement with their most valuable customers. Through these combined, complementary technologies, SpotOn is positioned to support clients of all types and sizes to manage their business now and well into the future.
The transaction is expected to close by mid-September.