Paytronix Systems has secured $10 million in funding, led by Great Hill Partners, a Boston-based private equity firm, and the company’s cofounders.
The technology solution provider, which specializes in loyalty, rewards, gift, mobile applications, order and delivery, and guest engagement analytics and business intelligence software, received a $65 million growth equity investment from Great Hill Partners in 2018. Also investing in the new funding round is Tim Ridgley, founder of Open Dining, which was acquired by Paytronix in August 2019. Within the financing is expanded credit from Silicon Valley Bank.
According to the company, the new investment will help ensure that Paytronix is on sound financial footing and will continue to provide its restaurant and other clients with the communications tools necessary during this unprecedented COVID-19 pandemic.
Paytronix, which is headquartered in Newton, Massachusetts, was founded in 2001 by Andrew Robbins and Matt d’Arbeloff is now used by more than 400 brands across 30,000 restaurant and retail locations.
The restaurant market has been hit particularly hard by this crisis, with nearly two-thirds of restaurant workers laid off and sales dropping as much as 90% in some states. A Paytronix examination of its customer data shows a leveling off within the industry and even a recent upward trend, with the hospitality market finding a baseline from which to grow. Amid the pandemic, Paytronix has emphasized the benefits of gift cards, which can be viewed as interest-free loans from consumers, with an assurance that they will return to the restaurant when it reopens for business.
“Our restaurant clients are suffering, but we’ve also seen signs of hope. We know from our experience enduring through boom and bust cycles that loyal guests help get brands through the tough times. This funding is designed to ensure that our tools will help our clients get through this crisis,” said Robbins, who serves as CEO. “We also know that restaurants need new and innovative approaches to services like mobile ordering and delivery. The COVID-19 crisis is driving remarkable innovation in the foodservice space and our goal is to be there for our clients, helping them deliver on their promises to their guests.”
To meet this need, Paytronix has recently rolled out several technology updates and innovations:
- Rapid-Launch Order & Delivery enables restaurants to get a simple online-ordering-and-delivery model up and running within two weeks.
- Touchless payments and loyalty tie NFC payments to loyalty programs with a single tap and are part of our deep integrations with Google Wallet and Apple Pay.
- New scoring helps brands quickly identify the guests most likely to take advantage of new offerings.
- Additional Order & Delivery features like curbside pickup, group ordering, and point-of-sale integrations offer clients more options for customizing and deploying their own programs.
“The hospitality market has clearly taken a powerful hit during this time of crisis. But right now is the time to double down on what works and invest intelligently. We believe the Paytronix team has a great vision for the future and is building products that will help operators navigate through these trying times today, as well as through the long-term recovery,” said Nick Cayer, partner at Great Hill Partners.