SpotOn, one of the fastest-growing software and payments companies with comprehensive solutions for restaurants and retail businesses, today announced $300 million in Series E funding, raising its valuation to $3.15 billion. The funding will be used to acquire Appetize, a leading digital and mobile commerce platform for enterprise businesses, such as sports and entertainment venues, theme parks, zoos, college campuses, and more.
The round was led by Andreessen Horowitz (a16z), one of the world’s leading technology and software investors, 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, further reinforcing the company's momentum and market potential.
"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,” says 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.”
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.
“From our first meetings with Appetize, we knew they had great people and a great product, and the more we worked together it became clear that our two companies were stronger together,” says Matt Hyman, Co-CEO of SpotOn. “We are combining our complementary technologies, extending our market coverage and retaining our shared passion for great service and support for our clients. SpotOn is quickly becoming a part of everyday life for consumers across the country whenever they shop, dine, or visit a stadium or a college campus.”
“Appetize has built a truly special team and product that is trusted by some of the most iconic brands in hospitality, from Yankee Stadium to LSU to the San Diego Zoo. Likewise, SpotOn has earned the trust of tens of thousands of small businesses and independent restaurants with their technology and team,” says Max Roper, CEO at Appetize, who will continue running the business as part of SpotOn. “This acquisition enables our combined team to accelerate investments into our core product and client base, while expanding to fill a void in the mid-market space. 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.”
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.