EatStreet Downloads Another $11M for Restaurant Ordering Software

EatStreet has raised nearly $11 million in equity financing, according to a regulatory filing that was made public on Thursday.

The Madison, WI-based developer of online food-ordering software has now raised more than $40 million since launching in 2010, says Matt Howard, co-founder and CEO of EatStreet.

Howard declined to provide specifics related to what his company plans to do with the money, which according to the filing came from two investors. He did say that EatStreet is currently focused on expanding its national footprint, as opposed to moving into other countries. The startup currently serves more than 15,000 restaurants across more than 250 metro areas in the U.S., he says. Millions of people have used the service, Howard says, though he declined to provide exact figures.

EatStreet currently has about 150 employees, and nearly all of them are based in Madison, Howard says. That’s up from a headcount of about 110 in December, when the startup raised $15 million in a Series C funding round.

The company, which last month was named one of Madison’s top places to work, recently moved into new offices in the city’s downtown. According to a press release, the 20,000-square-foot workspace features a game room, showers and lockers for employees who commute by bicycle, and a rooftop terrace.

Howard says that EatStreet has expansion rights to get more space in the building, located at 316 W. Washington Ave., and is likely to tack on additional rooms in the next few years. He calls the space a “long-term home” for his company.

EatStreet allows its users to place orders on the company’s website, or via mobile apps for iOS and Android.

Takeout and delivery food is a $70 billion market, but as TechCrunch reported last year, only $9 billion of that is online. One of the sector’s larger players is Chicago-based GrubHub (NYSE: GRUB), which last year announced it planned to start its own delivery service.

EatStreet, meanwhile, concentrates on helping customers place orders, and leaves delivery to others. In some cases, restaurants that have agreed to use the startup’s software have their own employees deliver orders. In others, restaurants outsource delivery to third parties, such as Austin, TX-based Mr. Delivery.

Uber—the ascendant San Francisco company known more for transporting people than food—has its own delivery, arm, UberRush. In January, EatStreet announced a partnership with UberRush aimed at improving food delivery in Chicago and other cities.

As for the possibility of EatStreet handling some deliveries itself in the future, Howard last year told Xconomy that he wouldn’t rule it out. Since then, the startup has not announced any concrete plans to do so, however.

Jeff Buchanan is the editor of Xconomy Wisconsin. Email: jbuchanan@xconomy.com Follow @_jeffbuchanan

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