EatStreet, an online and mobile food ordering company has announced it raising $15 million in Series C round of funding led by 4490 Ventures Lumia Capital along with GCI Capital, MATH Venture Partners and State of Wisconsin Investment Board.
Founded in 2010 and based in Madison, EatStreet is the largest independent online and mobile food ordering service in the United States. It integrates commerce between restaurants and diners with an online food court that consists of over 15,000 restaurants in more than 250 cities nationwide. Quite recently, the company added 100 markets, bringing its total to 250, a 66% increase from 2014. The company is on talks for pilot programs in selected markets and will announce local and national strategic partnerships in 2016.
With the fresh funds, EatStreet plans to grow by expanding its operations to other cities, increasing market share in existing cities and make technological improvements to its core products. This round was also supported by initial investors generator, Cornerstone Angels, Independence Equity and many prominent Wisconsin angel investors. This round of funding increase the total round of funding to close to $30 million since its founding.
“We’ve exceeded all expectations in 2015 and given the fast-paced nature of the online food ordering industry, we’re thrilled to announce this most recent round of investment,” says Matt Howard, CEO and co-founder of EatStreet. “It’s unbelievable to think that just a few years ago there were three of us in a dorm room building a product that we thought would change the way people ordered food. And today, we’re processing millions of orders for customers nationwide.”
In the last 12 months, EatStreet has seen drastic growth expanding into additional Tier 2 markets and also offering online delivery and takeout service in more than 250 cities all over the country. It has posted thripple-digit annual sales growth with record new diner acquisition, all while doubling its workforce in Madison. Howard added, “We are on a mission to revolutionize how people place delivery and takeout orders online – from how quickly a diner is able to browse local restaurants or new cuisine types to how easily they are able to place an order on our app.” It recenly introduced Food Crew that allows coworkers or friends to split the bill. “We are always thinking about how we can offer the most rewarding dining experience. From the moment hunger strikes to the moment that doorbell rings, it’s the focus of everything we do.”
Unlike many other companies in this sector, EatStreet has not gotten into food delivery. Many bigger players like Chicago-based GrubHub that went public in 2104, has partnered with Fatburger for both food ordering and delivery services.