Online ordering company Olo files for $100 million IPO

Ordering food on app

Written by Sam Fowler

After showing huge gains in 2020, online ordering company Olo has filed to go public on the New York Stock Exchange. The company hopes to raise up to $100 million and use the funds to fuel growth through acquisition, according to its filing with the Securities and Exchange Commission.

Noah Glass founded Olo in 2005. The company is headquartered in New York City. It is an online ordering and delivery service that powers multiple high-profile restaurants, such as Five Guys, Chile’s and Dairy Queen. The company works with 64,000 restaurants and processes 1.8 million orders a day. It is considered the leading food ordering platform for the restaurant industry.

Goldman Sachs, J.P. Morgan, and RBC Capital Markets are serving as financiers. 

“Our platform powers restaurant brands’ on-demand commerce operations, enabling digital ordering and delivery, while further strengthening and enhancing the restaurants’ direct consumer relationships,” Olo said in the filing. “Olo provides restaurants with a business-to-business-to-consumer, enterprise-grade, open SaaS platform to manage their complex digital businesses and enable fast and more personalized experiences for their customers.”

As of 2020, Olo hit the milestone of over one billion orders and grew revenue 94 percent when compared to last year, according to its IPO filing. Net revenue was over 120 percent with a gross margin of over 80 percent. 

The company has focused on off-premise transactions during the pandemic. In the fall, the company announced an updated design to its platform, called Serve, that integrates better with point-of-sale systems, delivery and other systems.

The restaurant business is currently one of the largest industries in the country, according to the filing. It accounted for $863 billion out of the $1.6 trillion food industry and is still expected to grow, despite losses last year. Olo believes that there will be another increase and by 2024 restaurants will surpass their 2019 worth and will hit $1.1 trillion. 

Olo works with most platforms and provides seamless digital ordering for restaurants. The filing is part of a trend within the digital food and delivery industry. DoorDash has gone public, and Toast is testing the waters with an article in the Wall Street Journal last week. 

Olo relies on three core modules: 

Ordering: The white label that enables consumers to order directly from restaurants and pay with mobile, web or other digital channels.

Dispatch: Enables restaurants to offer and expand direct delivery while optimizing price, timing and service quality.

Rails: A channel management solution that allows restaurants to control menu, pricing, location data and availability. 

“Leading restaurant brands trust Olo’s enterprise-grade platform for its capabilities, reliability, security, scalability, and interoperability,” Olo said in its filing. “Our platform currently handles, on average, nearly 2 million orders per day … we continually invest in architectural improvements so our system can scale in tandem with our continued growth.”

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