ezCater, a marketplace for business catering, has raised $100 million in a fresh round of funding led by Wellington Management Company. Existing investors ICONIQ Capital and Insight Venture Partners also participated in this round.
With the current funding, the company has now raised a total of $170 million at a valuation of $700 million, according to a source familiar with the matter.
The company will deploy raised capital to enhance its product and expand internationally, however, the company hasn’t announced which countries it will target first.
Founded in 2007 by Briscoe Rodgers and Stefania Mallett, EzCater isn’t a food preparation or delivery service. Instead, it makes a platform that connects restaurants, caterers, and drivers with business people who are arranging meals for their next workplace gathering. Once an order is placed, ezCater tracks the orders from a distance and ensures there are no issues. If there is a problem, a corporate customer calls ezCater rather than the caterer, and ezCater then troubleshoots the issue.
ezCater is also uniquely suited to help restaurants grow their catering volume. By connecting caterers to businesspeople, including many who are travelling out of their home area, ezCater helps caterers win over new customers they often cannot otherwise reach.
The company has 60,000 restaurant partners on the platform and offers its services in more than 22,700 cities and towns. ezCater has been growing rapidly and the company’s revenues have doubled in each of the past six years.
According to Mallett, the market for bringing food to businesses in the U.S. is about $22 billion and growing. But to keep that pace going, the company is preparing to look outside the U.S.
Commenting on the investment, Stefania Mallett said, “This allows us to extend our reach to take on the rest of the world.” She didn’t mention the countries that the company will target first. She will announce it later this summer.