SpotOn, a provider of payments services and software for the restaurant, hospitality and retail industries, announced Wednesday that it has raised $300 million dollars in new capital, resulting in a valuation for the San Francisco-based company of $3.6 billion.
The funding round was led by Dragoneer Investment Group along with participation from current investors, including the venture capital firms Andreessen Horowitz, DST Global, Franklin Templeton and Mubadala Investment Company. It also attracted a new investor, G Squared.
The money raised will be used to develop "technology products that enable businesses to meet the evolving needs of today's consumer," the company said in the May 18 press release.
SpotOn provides restaurant payment and management software systems that integrate marketing, website development, online ordering and loyalty programs.
Previously, SpotOn had raised a total of $628 million, according to Crunchbase. The company landed $300 million in funding last September, which gave it a valuation of $3.1 billion. It also lured $125 million last May.
SpotOn has used past funding to bolster its flagship SpotOn services with the acquisition of Dolce, a software company that streamlines payroll, scheduling, tip-pooling and compliance functions.
SpotOn also launched an omnichannel retail platform that it says allows independent retailers to compete with big-box stores and ecommerce giants.
Meanwhile, its executive team has expanded with the hiring of Lisa Banks as chief financial officer, JiNa Han as chief people officer and Mark Brodahl as chief revenue officer.
The company's customers include more than half of Major League Baseball stadiums. At Chase Field in Arizona, SpotOn added 383 point-of-sale stations, 51 handheld devices and three kiosks to help increase transaction speed for the 2022 season.
Dragoneer has invested in SpotOn six times over the past three years. This is the first time the San Francisco-based investor has led the funding round for SpotOn. With $25 billion in assets, Dragoneer has been an investor in such well-known startups as Atlassian, Chime, Doordash, Slack, Spotify and Uber, among others, the release said.
“Mom-and-pop restaurants and retail businesses are facing rapidly changing consumer expectations within today’s tech-driven landscape,” Marc Stad, Dragoneer’s founder and managing partner, said in the statement. “SpotOn has made it their mission to provide customized solutions to drive the growth and adaptation needed as businesses of all sizes evolve and grow.”
Payments company startups have been among the biggest recipients of venture capital money, reaping billions of dollars in recent years, including record sums last year.
CB Insights estimates that venture capital funding globally dropped 19% in the first quarter to $143.9 billion, relative to a record-breaking fourth quarter, an April 7 report from the research firm said. It was the biggest quarterly decline since the third quarter of 2012.
According to the National Restaurant Association’s 2022 State of the Restaurant Industry report, eight out of 10 operators say using technology provided a competitive edge. The survey released earlier this year by the trade group also indicated that operators plan to increase their investment in technology.
