Wisconsin Restaurant Ordering Platform EatStreet Closes $6M Series B
EatStreet has closed a $6 million Series B funding round that it says will help the Madison, WI-based online restaurant ordering platform double its staff and expand to more than 15,000 restaurants in 150 cities by the end of the year.
TechCrunch first reported the Series B raise. Xconomy reported in February that EatStreet had raised $3.7 million of an anticipated $5 million financing round. The round ended up reaching $6 million, with investments from Cornerstone Opportunity Partners, Independence Equity, Great Oaks Venture Capital, Silicon Valley Bank, Milwaukee-based CSA Partners, and angel investors, EatStreet co-founder and CEO Matt Howard told Xconomy.
“This funding round is really important because it allows us to keep expanding across the country,” Howard said.
EatStreet has signed up 3,000 new restaurants in the last three months and now serves 5,500 eateries, Howard said. It is currently in 75 cities but intends to double that by the end of the year.
EatStreet started the year with 16 full-time and about 15 part-time employees, and has grown to 35 full-time and 30 part-time workers, with plans to add more, Howard said. It outgrew its 2,500-square-foot space and has moved into a 9,000-square-foot office in downtown Madison.
Howard declined to share specific numbers, but said sales tripled between 2012 and 2013.
EatStreet, which launched in 2010, has been primarily targeting mid-sized cities that are underserved by competing services like GrubHub (NYSE:GRUB), a Chicago-based company that just went public. But now EatStreet is also eyeing larger markets like Los Angeles and GrubHub’s home turf, Howard said.
“From here on out, we’re focused on a nationwide campaign,” Howard said. “GrubHub is doing a great job, but we feel there’s definitely some room for another player in those bigger markets.”
Besides its Web and mobile ordering platform for consumers, EatStreet also builds custom websites, mobile apps, and Facebook ordering features for restaurants.