SpotOn Raises $60M Series C To Support SMB Growth

SpotOn Transact, a software and payments company for small and medium-sized businesses, secured $60 million in Series C funding just six months after announcing its $50 million Series B investment.

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DST Global led the round, which included existing investors Dragoneer Investment Group and Franklin Templeton. The new investment brings the 3-year-old company up to $190 million in total funds raised, SpotOn President RJ Horsley told Crunchbase News.

SpotOn focuses on the retail, services and restaurant industries. These were some of the hardest hit sectors of the COVID-19 pandemic and led many to become more technologically savvy.

“The pandemic forced SMBs to take a hard look at their technology,” Horsley said. “There is now a massive shift to adopt technology, because today no one can say they can still run their business the same as they did 20 years ago.”

As such, the 3-year-old company saw an increase in demand for its products specifically designed for appointments, e-commerce, online ordering and reservation management. In addition, SpotOn helps clients with marketing, website development, omnichannel payments and point-of-sale. The funding announcement follows the company’s acquisition of reservation management platform, SeatNinja, in August. This is SpotOn’s third acquisition.

The new funding will be invested in continued development of those products and to aggressively hire.

“DST is an incredible partner, and combined with our existing investors we will be able to provide our clients with tools that will help them focus on their businesses,” Horsley added.

SpotOn has offices in San Francisco, Chicago, Detroit, Mexico City and Krakow, and the company now employs more than 1,000 people. The company’s revenue increased “by over 150 percent” in the past year. Meanwhile, Horsley expects to have approximately 30,000 clients this year.

One of those clients is Kevin Youkilis, owner of Loma Brewing Company, who said in a statement that his company was in the midst of integrating more technology prior to the pandemic, but found it had to fast-track those goals to “get back to business as fast as possible, serve our customers and keep our people employed.”

“In less than a week we were able to get SpotOn Restaurant and Online Ordering in place, a seamless integration that improved our efficiency, expanded our business and helped increase sales from early COVID shutdown levels,” he added.

Feature photo of SpotOn’s executive team, from left, RJ Horsley, Zach Hyman, Matt Hyman, and Doron Friedman courtesy of SpotOn
Blogroll illustration: Li-Anne Dias