Merchant bank Raine Group has paid $40m for a minority stake in Olo, the US-based developer of an ordering platform for restaurants.
Olo, which also counts online payment platform PayPal as an investor, began life in 2005 as a text message-based ordering service for restaurants but has since grown its offering into an ordering platform that integrates with restaurants’ existing systems, allowing customers to order food before they arrive.
The software powers mobile, web and telephone ordering for more than 150 restaurant brands, equating to more than 20,000 locations across the US. Its latest feature, Dispatch, enables businesses to add on-demand delivery services to a restaurant’s services.
Colin Neville and Brandon Gardner of Raine Group will join Olo’s board of directors in conjunction with the round.
Neville said: “With secular tailwinds driving the inevitable shift to digital ordering, Olo’s users and sales volume are both more than doubling on an annual basis. We see a long runway in the firm’s core ordering platform and believe its new initiatives will resonate with clients.”
PayPal, Core Capital Partners, RRE Ventures and angel investor David Frankel had earlier provided $5m for Olo in a 2013 series B round that increased the company’s overall funding to $13.8m.