TabbedOut, a payment app allowing customers to pay their bills at restaurants and bars right from their smartphones, announced yesterday (June 4) that it secured $21.5 million in Series C funding. In its press release, the startup reported consistently high growth as a simple and secure payment transaction system for customers and merchants.
"TabbedOut was founded on the fundamental idea that we could save people time and help venues provide guests with a better customer experience when paying their bar and restaurant tabs," said TabbedOut CEO Alex Broeker, according to the release. "With tens of thousands of tabs processed each month we can provide an unprecedented view into consumer baskets, which can be challenging for beverage companies. We've built a valuable service for customers and a powerful platform for providing actionable insights into consumer behavior and brand engagement. I believe the ROI inherent in our merchant and brand programs will soon be so obvious that we will quickly see big data decision-making trickling down to the hospitality industry."
With the new funding, the mobile payment startup plans to attract more users by implementing automated loyalty and rewards programs and offering integrations with additional mobile services. Focus will also move toward advancing the development of its mobile application and increasing the capabilities to provide data insights and enhanced user engagement.
Unlike other dining-focused payment apps, TabbedOut provides no specialty hardware to merchants and does not allow customers to place food orders, reported The Wall Street Journal. The publication compared the app to the ever-popular Apple Pay, as TabbedOut aims to streamline the checkout process, in addition to its aforementioned perks.
To date, TabbedOut has raised a total of $39 million, with its latest funding round led by Wellington Management Company, along with participation from investors NEA and Morgan Creek Capital Management. According to The Wall Street Journal, Broeker has confirmed that this will be the final round of funding prior to going public.
"Since originally partnering with TabbedOut, we have been consistently impressed with their tremendous growth and continued innovation in the space," said NEA partner Rick Yang. "They have successfully partnered with businesses that represent the full spectrum of the hospitality ecosystem, driving value for all parties involved. We are thrilled to continue working with Alex and the team as they accelerate market expansion and continue to lead and move the industry forward."
Consumers can expect to see the mobile app expanding to 20 new U.S. markets in the near future, with hopes to go international soon after.
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