Toast, the US-based restaurant management software provider backed by internet and technology conglomerate Alphabet, confirmed today it has raised $250m in a series E round that valued it at $2.7bn.
Growth equity firm TCV and hedge fund manager Tiger Global Management co-led the round, which included venture capital firms Bessemer Venture Partners (BVP) and Lead Edge Capital, and funds and accounts managed by T. Rowe Price Associates.
Toast launched its restaurant management platform in 2013, two years after the company was founded, and has since grown its customer base to tens of thousands of restaurants.
The product includes a point-of-sale system that connects to handheld terminals, in addition to a data reporting and analytics tool that tracks and studies business performance, and one that can manage an online ordering and delivery service for the restaurant.
The latest round brought Toast’s total funding to $506m, $115m of which was provided in a July 2018 series D round led by funds and accounts advised by investment manager T. Rowe Price Associates that also featured Tiger Global, at a $1.4bn valuation.
BVP led a $30m series B round for Toast in 2016 that included Alphabet unit GV, before the company added $101m in a mid-2017 series C round co-led by Lead Edge Capital and Generation Investment Management and backed by existing investors including BVP.
The series E funding will support a planned $1bn research and development investment drive planned by Toast for the next five years. CEO Chris Comparato said: “At our core, we believe every restaurant should benefit from the massive investment we continue to make in restaurant technology.”
