Boston-based point-of-sale firm Toast Inc., which focuses on restaurant technology, is contemplating a U.S. initial public offering (IPO) of up to $717 million, driving its value to $16.5 billion, according to a Monday (Sept. 13) Bloomberg report. The 10-year-old company intends to sell 21.7 million Class A shares for $30 to $33 each.
Monday’s announcement comes on the heels of last month’s PYMNTS report that Toast was filing an estimated $100 million IPO with an approximate valuation of $20 billion.
See also: ResTech Startup Toast Files for $100M IPO at $20B Valuation
In the wake of the pandemic, the Toast platform has taken off, particularly as restaurants transitioned more readily to takeout and delivery. The company’s software combines POS, front of house, back of house and contactless ordering options for customers, according to its website.
As of the end of June, the company had roughly 48,000 restaurant locations and a total of 29,000 customers. In the past 12 months, Toast processed more than $38 billion in gross payments. The platform was integral in handling an estimated 5.5 million guest orders daily. The company has a 6% market share of the 860,000 U.S. restaurants, marking a significant area for growth. Globally, there are 22 million restaurants with $2.6 trillion in yearly sales.
Read more: Toast’s IPO Filings Say ResTech Industry Spending Will Double
Toast saw a year-over-over increase of 17% in 2021, as PYMNTS reported. However, the second quarter of 2021 represented a 125% surge in gross payments volumes to $10.4 billion as compared to the same period in 2020. Total revenues skyrocketed to $823.1 million in 2020, up from $665 million in 2019.
While the company is thriving, the restaurant industry is still struggling to bounce back from the pandemic. This spring, Toast joined forces with the Small Business Administration (SBA) to assist in streamlining the application process for the $28.6 billion Restaurant Revitalization Fund grants.
More details: Toast Teams With SBA to Streamline $28.6B Restaurant Grant Process
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