TouchBistro Raises US$110M, Eyes Acquisitions

The restaurant’s point of sale space is as competitive as the restaurant tech opportunity is large. And the equity funding rods fuelling this space are appropriately large. So there were no spit takes when we saw today that Toronto-based Toast competitor Touch Bistro has landed a C$150 million (about US$110 million) funding round from Francisco Partners.

Crunchbase tells us that, prior to the new round, TouchBistro had raised an impressive US$320 million (now $430 million) since it launched in 2010, including the latest round. The company offers a comprehensive restaurant management solution that includes POS, payments, marketing, loyalty, and reservations. The platform also accommodates online ordering, delivery management, contactless payments, and other customer engagement tools.

The company notes that it also expanded its executive team with highly experienced leaders “to take the company to the next level.” Is the next level an IPO like its rival Toast? Hard to say right now. The company has not disclosed its current valuation.

TouchBistro’s chief rival is Toast, which went public last September, closing its first day with a $31 billion market cap. Toast ended trading today at 22.01, with an $11.4 billion market cap. Boston-based Toast provides POS terminals and other tools to more than 48,000 locations. TouchBistro claims its solutions are operating in 29,000 restaurant locations worldwide.

On the Hunt

So what does TouchBistro plan to do with all this new cash burning a hole in its pocket? The company’s CEO has a long-winded answer to that question. The TLDR version is the money will fuel growth in North America. The company plans to accelerate its growth via product enhancements and acquisitions.

From the announcement, “The funds will be used by TouchBistro to accelerate the company’s growth initiatives, including expanding product offerings, core services, and strategic acquisitions as it continues to meet the evolving needs of its customers.”

Here is what the CEO actually said about the investment.

“Our industry-leading technology, optimized business model, and uncompromising focus on our customer experience has us well-positioned to accelerate our growth in the vast restaurant and hospitality sector throughout North America and beyond. Francisco Partners shares our enthusiasm about the growth potential for TouchBistro and our customers,” said Chairman and CEO Samir Zabaneh. “In addition to providing us with access to capital, Francisco Partners also has significant domain expertise and industry connections that will enhance and accelerate our growth trajectory and acquisition plans.”

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