SpotOn, a startup in the payments and software industries, has closed on a $300 million Series F funding, valuing the business at $3.6 billion. New investor G Squared joined current backers Andreessen Horowitz (a16z), DST Global, Franklin Templeton, and Mubadala Investment Company in the most recent round, which was managed by Dragoneer Investment Group. With this investment, SpotOn raises money for the third time in a single year and Dragoneer invests in the firm for the sixth time in three years. But this is the first round the business has lead. It follows a year in which the business claims it saw 100% annual recurring revenue (ARR) growth.
At a $3.15 billion valuation, SpotOn said in September of last year that it had completed on a $300 million Series E investment. Just three and a half months prior to that investment round, the business secured $125 million at a $1.875 billion valuation (an a16z led both of those rounds). Since its founding in 2017, SpotOn has concentrated on offering software and payments technologies to SMBs, with a concentration on dining and retail establishments. In an effort to increase its presence in the business market, it purchased Appetize last year.
Today, SpotOn, a SaaS company, claims to work with companies “of all sorts and sizes,” from small family businesses to Major League Baseball stadiums. However, it is mostly targeted at companies in the retail, food, and hotel industries. Since its previous increase eight months ago, SpotOn has acquired another business, introduced a new product, and employed new executives. In an effort to bolster its main restaurant offering, it late last year bought Dolce, a labor management firm that automates payroll, scheduling, tip-pooling, and compliance.
SpotOn Retail, which the business also introduced, is described as “an omnichannel retail platform that allows local shops to compete with big-box stores and e-commerce giants by selling in store, online, or on the move through one smooth, intuitive dashboard.” In addition, it has made a number of executive additions, including Lisa Banks as its CFO. Although SpotOn declined to comment on any prospective intentions to go public, the employment of a CFO often means that a firm has its sights set on the public markets.
“In today’s tech-driven environment, mom-and-pop eateries and retail operations must adapt quickly to swiftly changing consumer expectations. According to Marc Stad, founder, and managing partner of Dragoneer, “SpotOn has made it their mission to deliver tailored solutions to promote the development and adaption needed as organizations of all sizes expand and flourish. SpotOn is directly competing with payments juggernaut Block (previously Square) in the larger fintech scene. Block has a market valuation of $48.5 billion today after acquiring BNPL participant Afterpay in an unexpected $29 billion deal. Decacorn Toast has difficulties in the restaurant industry as well.
Intriguingly, SpotOn’s value gain was less pronounced than it had been over the previous 18 months. This may be indication of the worldwide private market correction. Consequently, even though it wasn’t a flat round, it was nearly $500 million more than its previous fundraising, or a 14.3% gain. To put things in perspective, SpotOn’s Series E fundraising at a $3.15 billion valuation was approximately 5x what it was at the time of its Series C round, when it was valued at $625 million.