Restaurant software developer Toast Inc. is aiming to reach a $16 billion valuation in its initial public offering (IPO), as was evident in its regulatory filing on Monday.
The company, which sells software that assists restaurants with both in-person and online orders, is aiming to sell 21.7 million shares in the IPO, priced between $30.00 and $33.00 per share. The IPO is expected to raise $717.4 million.
Founded 10 years ago, Toast Inc provides restaurants with a software platform from which they can process orders, manage their delivery network, and oversee payments.
During a private fundraising round in February, Toast was valued at about $5 billion, with investors including American Express Ventures, Bessemer Venture Partners, Greenoaks, G Squared, TCV, TPG, and Tiger Global Management.
Toast’s decision to go public was based heavily on the spike in demand for online food deliveries spurred on by the coronavirus pandemic. As a result of pandemic-induced lockdowns, food delivery services such as DoorDash Inc, Uber Eats, and Grubhub have experienced surging revenues, with Doordash going public at the end of last year.
Other companies in the food and restaurant industry that are set to launch IPOs this year include Freshworks, Thoughtworks, and ForgeRock.
