Food software startup Olo is said to plan US IPO in 2020 to raise $300m

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Olo, a food-ordering software company where Shake Shack Inc. founder Danny Meyer sits on the board, is planning a U.S. initial public offering this year, according to people with knowledge of the matter.

The New York-based company could seek a valuation of about $1 billion in an IPO, said one of the people, who asked not to be identified because the information is private. Olo, whose name is derived from “online ordering,” interviewed potential advisers around the end of 2019, the people said.

No final decision has been made and its plans could change, the people said. An IPO could raise at least $300 million, one of the people said.

A representative for Olo declined to comment.

Olo’s software powers loyalty programs and allows restaurants to manage orders and set customized menus, according to its website. Olo partnered with Uber Technologies Inc. in June 2019 to allow consumers to place Uber Eats orders directly into restaurants’ systems, according to a press release.

Other customers include restaurant chains such as Five Guys Holdings Inc., California Pizza Kitchen Inc. and The Cheesecake Factory Inc.

Food delivery services have been a focal point of the IPO market for the past year. Postmates Inc. said in February that it had filed confidentially to go public. Uber Eats was touted as a key vehicle for growth in Uber’s $8.1 billion listing last May. DoorDash Inc. has been considering bypassing an IPO in a direct listing, people familiar with its plans have said. Olo also has partnerships with DoorDash and Postmates.

Olo was founded in 2005 as a text-message food-ordering service. It received a $40 million investment from the Raine Group in 2016 and $18 million from Tiger Global Management last year, according to company statements.

The software company announced last year that it was working with Alphabet Inc.’s Google to enable customers to order directly from restaurants via Google Searches.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.