Online food ordering service Grubhub agreed yesterday to acquire LevelUp, a US-based mobile payment app developer backed by corporates Deutsche Telekom, Alphabet, JPMorgan Chase and CentroCredit Bank, for $390m in cash.
Founded in 2008 as location-based mobile gaming platform Scvngr (pronounced “scavenger”), LevelUp pivoted to its current business model in 2011 and rebranded to its present name in 2012.
The company has built a mobile app that enables restaurant costumers to book tables, pre-order food and pay the bill. The restaurants themselves can use the platform to offer loyalty schemes, launch customised marketing campaigns and track sales performance.
The offering can be accessed through a standalone app but the technology can also be integrated into in-house apps. LevelUp will continue to operate under its current name and its staff will remain with the business.
The company had raised at least $96m, including $50m in a May 2017 round backed by financial services firms JPMorgan Chase and CentroCredit Bank and wealth management services provider US Boston Capital.
Undisclosed investors had previously invested $5m in LevelUp in 2016, according to a securities filing, after it had secured a commitment of undisclosed size by JPMorgan Chase in 2015.
The company closed a $21m series D round in August 2012 with a $12m investment from telecommunications firm Deutsche Telekom’s T-Venture unit.
GV, a subsidiary of internet and technology conglomerate Alphabet, had taken part in the round’s $12m first tranche in June 2012 alongside Balderton Capital, Highland Capital Partners, Continental Advisors and Transmedia Capital.
GV had already contributed to a $15m series B round for LevelUp that also featured Balderton and Highland in 2011, two years after GV and existing backer Highland had injected $4m in series A capital.
– Image courtesy of LevelUp.