SpotOn is the San Francisco startup taking on the likes of Square in the payments space. SpotOn has a mission to provide more than payment processing and point-of-sale software. It aims to be a “one-stop-shop” for small to medium businesses (SMBs), offering services that enable custom website development, scheduling software for appointments, marketing, review management, analytics, and digital loyalty capabilities.
After going from strength to strength since its founding in 2017, the fintech recently announced a successful Series C funding round. Led by DST Global, a world leading investment firm, and with participation from existing investors Dragoneer Investment Group and Franklin Templeton, the round raised $60 million for SpotOn. This funding follows a successful Series B funding announcement in March, marking remarkable growth over the past six months for the start-up which has raised $190 million since 2017, with $110 million raised in 2020 alone.
With a focus on offering its products within the retail, services, and restaurant industries, SpotOn was able to adapt and grow despite the sector’s decline due to the COVID-19 pandemic. On this, SpotOn’s President RJ Horsley said, “the pandemic forced SMBs to take a hard look at their technology. There is now a massive shift to adopt technology, because today no one can say they can still run their business the same as they did 20 years ago.”
The fintech witnessed a rising demand for its products, especially those designed for appointments, e-commerce, online ordering, and reservation management – which became essential for keeping the sector afloat as consumers were encouraged to stay at home.
The funding is said to be invested in ongoing product development and aggressive hiring as the company anticipates expansion to meet its demand. Acquisition is also a strategy for growth, with SpotOn reportedly acquiring SeatNinja, the reservation management platform, in August. In its three years of business, this is SpotOn’s third acquisition. Co-founder Matthew Hyman said, “We will continue to create innovative products and further our go-to market approach to ensure merchants nationwide have access to the tools they need to run their businesses.”
SpotOn has offices in San Francisco, Chicago, Detroit, Mexico City, and Krakow. It employs more than 1,000 people and its revenue is said to have increased by 150% since the past year, with Horsley anticipating an uptake of 30,000 new clients before year’s end. Despite its growth, the fintech works to ensure that its services are comprehensively designed across each vertical while being affordable for its market of SMBs.