POS player Lightspeed has raised $61 million in funding to help the company grow its platform aimed at retailers and restaurants operating around the globe.
TechCrunch reported Wednesday (Sept. 16) that the company, based in Montreal, has earmarked the money to boost growth internationally and in its omnichannel efforts. The Series C funding was led by two big Canadian investment firms, Caisse de dépôt et placement du Québec and Investissement Québec. Lightspeed CEO and Founder Dax Dasilva said that the company has been focusing on small to mid-sized players, with average sales per year of around $600,000 and with roughly one to 10 physical locations.
The CEO told the tech site that the company is still in growth mode (and not as of yet disclosing its revenues), which implies that funding and other sources of income are being put back into the business.
TechCrunch said that unlike peers such as Shopify and Square, Lightspeed does not derive its sales from a percentage of transactions. Rather, the company gets paid via subscription model, with the Software-as-a-Service platform at $76 per month for a single store and separate pricing for add-ons such as Lightspeed Webstore. The company has been seeing growth tied to its restaurant POS business, which has been spurred by a 2014 acquisition of Posios. The overall trend, according to Dasilva, has been as the cloud has lead to growth in eCommerce.
“There is a big change in the industry and POS systems,” Dasilva told the site. “They are becoming a center of interest because of the changes in regulation around the world, for example, because of EMV payments in the U.S. The offline and online worlds are merging, and so new cloud systems are combining to bring the best of both.”