EzCater Gobbles $35M From Iconiq Capital, Insight Venture Partners
[Updated 1/11/17, 11:46 a.m. See below.] Boston online food-ordering company ezCater has hauled in another big venture capital round.
Today the company announced a $35 million investment led by new backer Iconiq Capital; Insight Venture Partners, a previous ezCater investor, also chipped in. EzCater says it has raised $70 million in total venture capital, including a $28 million round announced in October 2015.
EzCater got started in 2007, before there was a glut of companies offering food delivery at the push of a smartphone button. But while most online food-ordering startups have targeted consumers, ezCater opted to serve businesses.
That focus seems to have helped ezCater build a healthy business. The company doesn’t share its sales numbers, but co-founder and CEO Stefania Mallett (pictured above) told Xconomy last year that her company roughly tripled its sales in each of the previous three years. EzCater says it has more than 50,000 restaurants and caterers in its online marketplace, and its service has helped feed more than 16 million people across more than 22,000 cities. Companies like Uber, AstraZeneca, Verizon, and Firestone have used ezCater’s service.
EzCater makes money through commission payments from caterers that receive orders through its service. The company says it doesn’t charge users any fees. EzCater handles the online transactions, and caterers take care of food delivery. [This paragraph added.]
Over the past 18 months, ezCater has doubled its staff to 175 people. It plans to hire another 100 people or so this year, according to an e-mailed statement attributed to chief marketing officer David Meiselman. The company says it will invest the new money in sales and marketing, product development, and the expansion of its customer service department.
Read more about ezCater in this Xconomy Q&A with Mallett.