The point-of-sale (POS) restaurant technology (ResTech) payments platform Toast is filing for an estimated $100 million initial public offering (IPO) at a rough valuation of $20 billion, Bloomberg and other news outlets reported on Friday (Aug. 27).
“Running a restaurant is tough,” Co-founders Aman Narang, Steve Fredette and Jonathan Grimm said in the prospectus filed with the U.S. Securities and Exchange Commission (SEC). “We started Toast to make restaurant work a little easier.”
The Boston, Massachusetts company is looking to trade on the New York Stock Exchange (NYSE) under the ticker symbol TOST. Goldman Sachs Group, Morgan Stanley and J.P. Morgan Chase & Co. are leading the offering, per the filing.
Launched in 2011, Toast’s platform has helped process about 48,000 restaurant orders by the end of June, leading to $38 billion in gross payments over the past 12 months. Its tech was instrumental in handling some 5.5 million guest orders every day, per reports. The company said its business escalated as eateries turned to technology to help adapt to the takeout and delivery market, driven by pandemic-related restrictions.
Toast has a 6 percent market share of the 860,000 U.S. restaurants, which shows that it has plenty of room to grow. The company has been backed by Bessemer Venture Partners, TPG, Tiger Global Management and Greenoaks Capital.
The startup saw revenue spike 105 percent, with year-over-year growth of $704 million since December 2020. Toast’s net losses, however, grew to $235 million compared to the $125 million in losses during the same period in the previous year.