Toast, which makes software used by restaurant operators, is considering conducting an initial public offering (IPO) this year, and it could value the company at as much as $20 billion, The Wall Street Journal (WSJ) reported.
The news comes amid a hot market for IPOs and a rapid recovery by Toast from forces that battered the company along with the industry it serves. Toast makes software restaurants use for marketing, inventory control, accounting and payments processing, menu management and management of online delivery, among other tasks. The company said its business took off as eateries turned to technology to help adapt to the take-out and delivery market driven by pandemic-related restrictions, WSJ reported.
Toast also operates a product called Toast Capital it said provides access to “fast, flexible funding for any restaurant need.” Its basic products range from about $70 per month to around $200 per month for U.S. customers.
Goldman Sachs and J.P. Morgan Chase have been hired by Toast to underwrite a traditional IPO if Toast holds one, WSJ reported, noting Toast also is weighing options including merging with a special purpose acquisition company (SPAC) — also known as a blank-check company — to go public or selling itself.
Reports in November put the value of Toast at about $8 billion.
Also in November, it was revealed that Toast held the offering so current and former employees of the Boston-based company could sell shares.
Toast was founded in 2011 by Aman Narang, Jon Grimm and Steve Fredette and launched in 2013. It has more than 2,000 employees.
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