GoTab, which runs a specialized software platform to run hospitality firms, has raised $18 million in a Series A round led by Truist Ventures, a unit of Charlotte, N.C.-based Truist Financial Corp. (NYSE: TFC).
The Arlington, Va.-based software company has so far raised $24.2 million from investors, such as New York’s Branded Hospitality Ventures and angel investors including Steven Kamali, Greg Cohen, Jim Hirshorn, Anthony Bruce, Jonathan Zabusky, Jodie McLean, George Krautzel and Will Graylin.
“Our goal from the beginning has been to help businesses run better through our host of solutions that address virtually every commerce, operations, and fulfillment issue operators and their teams encounter,” said GoTab cofounder and CEO Tim McLaughlin, who came up with the idea for the company when running a restaurant in 2015.
“We have been incredibly intentional with the solutions we develop for our customers, and this latest capital injection will help us further enhance our existing solutions, while also helping us continue to scale the business across sectors and geographies,” added McLaughlin, an engineer with significant entrepreneurial experience in e-commerce.
GoTab plans to use the capital infusion for further development of its platform and execution of its product suite, including enhancements of stationary and diverse hand-held and other systems.
“GoTab is a dynamic platform in the hospitality industry. Its unique and adaptable system draws on the team’s diverse background in operations and logistics to enhance business efficiency and significantly improve guest experiences,” said Tarun Mehta, who heads Truist Ventures. “Truist works with clients across the payments industry and believes in GoTab’s vision to enhance how guests interact with operators from their initial impression to a seamless payment transaction.”
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Launched in 2016, GoTab began with a humble code on the receipt for mobile payment. Two years later, it started using QR codes to enable on-premise mobile ordering. Its growth has accelerated since the Covid-19 pandemic. Now, GoTab offers an end-to-end platform for restaurants, and other hospitality firms, including hotels, resorts and sports venues. Its technology offers multiple payment options for customers, without needing to download an app or enter a password. For restaurateurs and other operators, it offers varied devices such as kitchen displays and bidirectional messaging among staff to optimize operations.
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Last year, GoTab processed over $500 million in gross merchandise value annually, with operations in 39 U.S. states and Canada. While traffic and sales stabilized last year, average price increases were up 15%. In some cases, such as drive-thru and lunch dayparts, traffic remained subdued, compared to the big spikes of 2021.
Truist Ventures, headquartered in Charlotte, N.C., invests primarily in fintech companies. Its portfolio includes MoCaFi, Stratyfy, Method Financial, SecureSave and Greenwood Bank.