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Toast Inc. is planning an initial public offering that could value the software vendor for restaurants at around $ 20 billion, people familiar with the matter said.
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Toast hired Goldman Sachs Group Inc. and JPMorgan Chase & Co. to subscribe to a possible listing later this year, these people said. It could also consider other options, including a sale or combination with a blank check company, some of the people said. There is no guarantee that Toast will eventually go public or pursue another option.
By going public, Toast, a 10-year company whose valuation jumped several times in the past year, would join a booming IPO market, fueled recently by the debuts of companies like Affirm Holdings Inc. and Bumble Inc. Both stocks are trading much higher than their IPO prices, as are those of 2020 predecessors, including Airbnb Inc. and DoorDash Inc.DISCOVER FOX BUSINESS ON THE MOVE BY CLICKING HERE
Also boosting the registry IPO market is a wave of so-called special-purpose acquisition companies, which go public without a business and then look for one to merge. Founded in 2011 by Aman Narang, Jon Grimm and Steve Fredette, Toast provides payment processing hardware and cloud-based software to restaurants. In addition to basic point of sale offers, its products include payroll processing and email marketing, and it also lends to restaurants through Toast Capital. Competitors include Square Inc. and PayPal Holdings Inc.
Toast Inc. is planning an initial public offering that could value the restaurant software vendor at about $ 20 billion. (Associated Press)
Toast’s business initially suffered an extreme blow with the pandemic and associated roadblocks. In an April blog post, Toast chief executive Chris Comparato said he planned to cut staff by about 50%, citing a drop in revenue of more than 80% in March in most cities. In the middle of the year, however, Toast’s business began to recover, with new demand for its software, as restaurants began to offer take-away services and other offers amid blocking restrictions.
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The Boston company was valued at about $ 4.9 billion in a $ 400 million fundraising round about a year ago, which included Bessemer Venture Partners, TPG, Greenoaks Capital and Tiger Global Management LLC.
The company last week added American Express Co. executive Susan Chapman-Hughes to its board of directors.