TouchBistro announced that it has raised CDN$158 million in Series E funding. The round was led by OMERS Growth Equity with participation from Barclays Bank, RBC Ventures, BMO Capital Partners, and existing investors including OMERS Ventures, JPMorgan Chase, Napier Park Financial Partners, BDC IT Venture Fund, and Kensington Capital Partners.
The funds will be used by TouchBistro to acquire complementary products that broaden the company’s capabilities, support the development of technology advancements, expand its presence in international markets, and increase the size of its team over the next year.
More than 16,000 restaurants in over 100 countries use the award-winning TouchBistro iPad POS and payments solution. Built from the ground up to work as the heart of a restaurant’s operations, TouchBistro processes more than US$11 billion annually and is used to streamline and simplify all aspects of running a restaurant – from order taking, payment processing, menu management, and accounting, to reporting, inventory management, staff scheduling, and customer loyalty. TouchBistro helps restaurants drive top line revenue growth, improve their operational efficiency, and make better decisions through software automation, predictive data insights, and seamless access to financial services.
“The global restaurant industry is undergoing a technology renaissance, and TouchBistro is leading the way in driving the industry forward,” says Alex Barrotti, CEO and founder of TouchBistro. “We have teamed up with some of the largest financial institutions in key markets around the world to provide our customers with enriched payment services and easier access to financial services. We are proud of these strong partnerships and plan to build on this model as we expand our global footprint.”
This quarter, TouchBistro announced partnerships with Barclaycard in the UK and EVO Payments in Mexico to provide integrated payment solutions that streamline processes for restaurants, drive operational efficiency, and reduce human errors associated with the bill-paying process. Last year, TouchBistro announced TouchBistro Payments powered by WePay, a JPMorgan Chase company, to streamline payment processing for restaurants in the US.
“We are particularly proud to be working with OMERS, a great partner for TouchBistro, because it has the unique ability to invest in companies at all stages of the growth lifecycle – from our earlier stage of development, through to the period of rapid growth we are entering, and beyond. The timing could not be better to invest even more aggressively in scaling our business,” says Barrotti. “We are at an inflection point with our annual growth rate accelerating close to 100 percent by gaining share of wallet per customer, going up market to more lucrative customers, and expanding into international markets. At least half of all new restaurants that open in Toronto use TouchBistro and we are confident we can achieve that level of success in other cities all over the world.”
“We invest in companies that we believe can grow to be the leaders in their sector. We are also passionate about growth, innovation, and making tomorrow better, three key areas that align with Alex Barrotti’s vision for TouchBistro,” says Mark Shulgan, Managing Director and Head of OMERS Growth Equity. “Alex and his team have built a high-growth and durable global software business that has led the restaurant industry’s platform shift from legacy POS to mobile and cloud.”
OMERS Growth Equity invests in high-growth companies backed by exceptional teams. OMERS Growth Equity is a long-term investor, focused on supporting companies to pursue all types of growth opportunities. These growth opportunities could include scaling operations, making acquisitions, expanding product lines, or entering new markets. As part of this transaction, Shulgan will join the TouchBistro Board of Directors.
“Last year we led TouchBistro’s Series D round. Since then, the company has exceeded our performance expectations and we are increasing our commitment by investing in this funding round,” says Damien Steel, Managing Partner and Head of OMERS Ventures. “We invest in and partner with the best and brightest entrepreneurs in tech to build a prosperous future. Alex Barrotti and TouchBistro have proven to be a perfect fit in our portfolio.”
Barclaycard, working in partnership with Barclays Principal Investments, participated in this funding round. “We were impressed by the scalability of the business and the vision of the founding team to drive and build a larger business around the evolving restaurant and dining space,” says Kester Keating, Head of US Investments at Barclays.
“We recently teamed up with TouchBistro to provide integrated payments to restaurants and pubs in the UK. Through this partnership we anticipate expanded commercial opportunities and distribution across Europe, and improved access to financial services for the restaurant market,” says Rob Cameron, CEO, Global Payments Acceptance at Barclays. “Our equity investment reaffirms our commitment to working with TouchBistro and our belief that the company is very well positioned to capture the opportunities that lie ahead.”
Barclays is a transatlantic consumer and wholesale bank offering products and services across personal, corporate and investment banking, credit cards and wealth management, with a strong presence in our two home markets of the UK and the US. With over 325 years of history and expertise in banking, Barclays operates in over 40 countries and employs approximately 83,500 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.