Payments and software startup SpotOn has secured $300 million in Series F financing that values the company at $3.6 billion.
Dragoneer Investment Group led the final round, including participation from existing backers Andreessen Horowitz (a16z), DST Global, Franklin Templeton, Mubadala Investment Company, and new investor G Squared.
The investment marks SpotOn’s third raise in the past year alone and the sixth time Dragoneer has invested in the company over three years. However, it is the company’s first time leading a round. It comes on the heels of a year in which the company says it has seen 100% year-over-year ARR (annual recurring revenue) growth.
Last September, SpotOn announced that it had closed a $300 million Series E round with a valuation of $3.15 billion. That funding event came just three and a half months after the startup raised $125 million at a valuation of $1.875 billion (an a16z led both rounds).
Since its inception in 2017, SpotOn has been providing software and payment technology to SMBs, focusing on restaurants and retail. Last year, it acquired Appetize to expand its reach into the corporate space.
Today, SpotOn, which adopts a SaaS business model, says it serves businesses “of all shapes and sizes,” from local family restaurants to Major League Baseball stadiums. But it is mainly aimed at retail, food, and hospitality companies.
In the eight months since the last raise, SpotOn has bought another company, released a new product, and hired new execs. Late last year, it acquired Dolce, a labor-management startup that streamlines payroll, scheduling, tip collection, and compliance, to bolster its flagship restaurant product.
The company also launched SpotOn Retail, which it describes as “an omnichannel retail platform that allows independent retailers to compete with big-box stores and e-commerce giants by selling in-store, online, or on the go through one seamless, intuitive dashboard.”
It has also hired several executives, naming Lisa Banks as its Chief Financial Officer. While SpotOn didn’t comment on potential plans to go public, hiring a CFO typically indicates that the public markets are in a company’s crosshairs.
“Mom-and-pop restaurants and retail businesses face changing consumer expectations in today’s technology-driven landscape. SpotOn has made it their mission to provide custom solutions to drive the growth and adaptation needed as businesses move from all sizes evolve and grow,” Marc Stad, founder and managing partner at Dragoneer said in a statement.
In the broader fintech landscape, SpotOn is pitted against payment giant Block (formerly Square). Block, which acquired BNPL player Afterpay in a surprise $29 billion deal, has a market cap of $48.5 billion today. It is also defiantly Decacorn Toast on the side of the restaurant.
Interestingly, perhaps as evidence of the global correction in the retail market, SpotOn’s valuation appreciation was less dramatic than in the past 18 months. For context, SpotOn’s Series E raise at $3.15 billion was about 5x of its $625 million valuation at the time of the Series C round. So while it wasn’t a flat round, it was about $500 million higher, or a 14.3% increase, compared to the last raise.
