Toast Aims to Raise $714 Million in IPO



Toast IPO Could Value It at $16 Billion

Toast, a startup that makes restaurant management software, is gearing up to raise $714.4 million in its upcoming initial public offering. The startup, which is selling 21.7 million shares priced at $30 to $33 per share, is expected to have a valuation of $16 billion.

The IPO comes as business for Toast has been booming ever since the pandemic. With restaurants shut down, Toast shifted its focus to helping restaurants manage delivery and accept contactless payments, which boosted its sales. In February the startup had a valuation of around $5 billion, counting TPG, Tiger Global Management, and American Express Ventures among its backers.

Toast Benefited During the Pandemic

Toast is among the startups to benefit from demand for online ordering, curbside pickup, and delivery. The company has been around for ten years and when it goes public will list on the New York Stock Exchange under the ticker “TOST.” Revenue at the startup is made up of recurring software-as-a-service income and payments revenue.

In 2020 Toast grew 24% but in the first half of this year growth has accelerated with sales up 105%. That implies Toast’s shift to focus on delivery and contactless payments is paying off. With business booming and sales growing, it makes sense why Toast is choosing now to go public.

IPO Market Red Hot in 2021

Toast is joining a growing list of startups which are gearing up to tap the public markets this year. Other big name software-as-a-service startups launching IPOs this year include Freshworks, Thoughtworks, and ForgeRock. All of the companies are sporting lofty valuations as they gear up to debut in a red-hot IPO market. So far in the first six months of this year 213 companies have gone public, raising a total of $70 billion. There are also about 87 companies looking to raise a combined $20 billion before the year’s end.

Toast is going public amid surging demand for IPOs and strong sales growth. It will be interesting to see if investors reward this startup once it makes its public debut.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21091403


All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.


TLS 1.2 Encrypted
Equal Housing Lender