ResTech POS Startup Toast Prices Shares at $40 Each for $20B Valuation

Restaurant technology (ResTech) startup Toast priced its initial public offering (IPO) above the range at $40 per share, giving the point-of-sale (POS) platform an estimated valuation of $20 billion, CNBC reported, citing an unnamed source.

Toast will trade on the New York Stock Exchange (NYSE) under ticker symbol TOST and had anticipated selling about 21.7 million shares at a boosted $34 to $36 price, up from the original range $30 to $33. The Boston startup should raise roughly $868 million.

See also: Toast Aims for $18B Valuation in IPO

The restaurant POS vendor closed out the second quarter of 2021 with a 125 percent increase in gross payment volume to $10.4 billion compared to 2020. As of June 30, Toast was working with more than 48,000 restaurant locations around the world, processing in excess of $38 billion of gross payment volume in the previous 12 months.

In August, Toast’s public offering was estimated at $100 million with an approximate valuation of $20 billion. In its filing with the Securities and Exchange Commission (SEC), Toast said its primary goal as a company has always been to develop a mobile app to streamline restaurant payments.

In the filing, Toast said it is “in the early stages of capturing our addressable market opportunity.”

There are about 22 million restaurant locations worldwide bringing in an estimated $2.6 trillion in sales so far this year, PYMNTS reported. Toast said it has about 6 percent of the U.S. market share of 860,000 locations in the U.S.

See: Toast’s IPO Filings Say ResTech Industry Spending Will Double

Toast offers a full suite of tools to make the business of running a restaurant easier, from handheld and contactless POS systems to management, staffing, menus, and other solutions.

The startup was co-founded by Steve Fredette, who serves as director; Aman Narang, chief operating officer; and Jonathan Grimm, chief technology officer.

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Total funds raised by Toast were more than $900 million, with the most recent round being last February’s $400 million Series F led by Bessemer Venture Partners, Greenoaks Capital, Tiger Global Management and TPG.