SpotOn 125m Series
Payment Startup SpotOn Transact Inc raises $125 Million in New Funding to Accelerate Product Development and Market Expansion. The Series D round is led by Andreessen Horowitz’s a16z.
Additional investors include DST Global, 01 Advisors, Dragoneer Investment Group, Franklin Templeton, and Mubadala Investment Co. The round was rated at $1.875 billion, giving SpotOn a unique status for a time.
Overview of the SpotOn:
Founded in 2017, SpotOn is a cloud-based software provider that provides merchant payment solutions with marketing, loyalty, website design, appointments, payroll services, and additional inspection services. This service is aimed at small to medium-sized businesses and Offers enterprise solutions at an affordable price. The catch-all in terms of its core SpotOn product offerings is payment processing startups that offer point-of-sale integrations.
SpotOn develops technology that combines these core business needs with a smooth and reliable system that becomes the backbone of operations. Its platform offers the convenience of single platform integration while claiming to save thousands of dollars in payments and software fees for multiple vendors.
The software is specifically focused on restaurants, services, and retail businesses. They claim to have over 30,000 customers. SpotOn also supports website and e-commerce transactions, a booming industry in an era of COVID-19-related lockdowns and trading restrictions. The company added 8,000 new customers in 2021, which is expected to triple by the end of the year.
Restaurants and small businesses turn to SpotOn because of its no-contract policy, personal service, fair pricing, and integrated cloud platform, the company said in a statement that Investing in innovation ensures that SpotOn customers have a future-proof solution with continuous upgrades and improvements. So they will have access to the best technology in the long run.
Why SpotOn raises $125M in an a16z-led Series D?
Today, SpotOn said it closed a $300 million Series E funding, valuing the company at $3.15 billion. That was five times the valuation at the time of the Series C round and above the $1.875 billion valuation in May when it raised $125 million at the Series D fundraising event as per SpotOn 125m series led a16zazevedotechcrunch.
Andreessen Horowitz (a16z) leads both the Series D and E rounds for the company, saying the company is growing 100% year over year and revenue has tripled over the past 18 months. Existing investors DST Global, 01 Advisors, Dragoneer Investment Group, Franklin Templeton, and Mubadala Investment Company have doubled their investments in SpotOn.
Joining in as new sponsors Wellington Management and Coatue Management, Splunk CEO Douglas Merritt and Snowflake CFO Mike Scarpelli are also investing individually as angels. With the new venture, SpotOn has raised $628 million since.
The latest investment is used to finance acquisitions of other local companies — Appetize, a digital and mobile commerce payment platform for enterprises such as sports and entertainment venues, theme parks, and zoos.
SpotOn for SaaS startups must address the scale of their enterprise infrastructure:
Since its inception in 2017, SpotOn has focused on providing software and payment technology to SMBs with a focus on restaurants and retail. The acquisition of Appetize expands SpotOn’s reach into the enterprise space in an effective manner. Appetize will be marketed as SpotOn and seek to expand its customer base. This includes impressive companies and organizations such as Live Nation, LSU, Dodger Stadium, and Urban Air.
Indeed, Appetize covers 65% of all major league stadiums. For example, when you order food at an event or concert, Appetize’s technology makes it easier to make contactless payments through a point-of-sale (POS) device.
SpotOn is gaining popularity with Square in the payments space. SpotOn says its offering extends beyond traditional payment processing and point-of-sale software so the platform aims to enable SMBs to run their business. SpotOn’s goal is to be a “one-stop shop” by incorporating tools like custom website development, Scheduling Software, Marketing Appointments, Scheduling Managing reviews, analytics, and digital loyalty.