: Toast Inc reached a valuation of nearly $ 33 billion when it debuted on the New York Stock Exchange on Wednesday, as shares of the catering software provider jumped 63%, underlining a deep investor appetite for them. fast growing software companies.
The stock opened at US $ 65.26, against an initial public offering price of US $ 40 per share. The valuation marked a substantial jump from the company’s last private funding round, when it was valued at US $ 4.9 billion in February 2020.
The Toast list comes at a time when the digital transformation of restaurants accelerated during the pandemic, and merchants have adopted Toast software to manage the take-out system through direct delivery or by working with partners, including DoorDash Inc and Uber Eats.
“We are only just starting out and believe we could be the unified platform that powers the restaurant industry,” said Chris Comparato, CEO of Toast.
The Boston-based company is building software that helps restaurants manage online orders and on-site meals, operate an on-demand delivery network, and integrate payments.
Founded in 2011, Toast counts among its backers TPG, Tiger Global Management and Bessemer Venture Partners. It has partnered with nearly 48,000 restaurants and processed more than $ 38 billion in gross payment volumes in the 12 months ended June 30.
As restaurant revenues plummeted due to lockdowns and other restrictions, Toast downsized and launched new features to respond to changes in restaurant behavior, including contactless ordering, pay-per-view meals. interior via QR codes, curbside notifications for take-out and flat-rate deliveries. based.
Toast’s net loss widened to US $ 235 million for the six-month period ended June 30, from US $ 125 million a year earlier. Revenue, however, more than doubled to US $ 704 million.
The company sold 21.7 million shares when it went public, raising around $ 869.6 million. Its IPO was listed above an earlier target price range of US $ 34 to US $ 36 per share.
Goldman Sachs, Morgan Stanley and JP Morgan were the major underwriters in Toast’s IPO.
(Reporting by Echo Wang and Krystal Hu in New York; Sohini Podder in Bengaluru; Editing by Ramakrishnan M., Aurora Ellis and Shailesh Kuber)