NoVa’s GoTab raised $18M in a Series A round

As the DMV’s food industry continues its post-2020 recovery, a local restaurant tech company is showing how far it’s come.

Arlington, Virginia-based GoTab raised $18 million in a new Series A round led by Truist Ventures. Founded in 2016, GoTab built a software platform to help restaurants and other hospitality companies. With its platform, customers can order and pay through a server with or without a smartphone (including one person ordering with a phone and one without on the same tab). All in all, GoTab offers contactless ordering and payment, kitchen management systems and data insights to lower costs.

Cofounder and CEO Tim McLaughlin said that the funds will let GoTab “keep doing what we’re doing” while also leaning into new sectors and geographies (it currently operates in 39 states and Canada). Specifically, he told Technical.ly that the capital will support the rollout of existing hardware like point-of-sale and kitchen display systems, handheld options and kiosks. For its current software products, it will be adding multilingual capabilities and expanding API. The team is distributed across the US, though McLaughlin confirmed there will be some DC-area hiring as well.

This $18 million, he added, is expected to be the last investment the company needs before becoming cash flow positive later this year.

“We have been very intentional with the solutions we provide for our customers and only believe in developing solutions that will make a true difference rather than just for the sake of rolling out a new feature,” McLaughlin said. “Further, this fundraise is further proof that we’re on the right path to helping operators maximize efficiencies and provide a better guest experience.”

According to McLaughlin, GoTab started as a mobile payment tool but expanded into QR codes two years later. Following the pandemic, it added to its product offerings to become an end-to-end platform for restaurants, hotels, resorts and sports arenas. Now, customers can pay without needing to download an app or enter a password. Moreover, back-of-the-house staff can optimize operations and communicate with bidirectional messaging.

McLaughlin first got the idea for the company when running a restaurant in 2015. But the company took off in 2020 when many restaurants turned to the QR code options that GoTab already offered. That period, he said, saw the company skyrocket in popularity and opened many doors for the business. From 2019 to 2022, the company reportedly grew its revenue by 7,352%.

“GoTab is a dynamic platform in the hospitality industry. Its unique and adaptable system draws on the team’s diverse background in operations and logistics to enhance business efficiency and significantly improve guest experiences,” said Tarun Mehta, who heads Truist Ventures, in a written statement. “Truist works with clients across the payments industry and believes in GoTab’s vision to enhance how guests interact with operators, from their initial impression to a seamless payment transaction.”

Since its founding, the company has raised $24.4 million from investors including Branded Hospitality Ventures, Steven Kamali, Greg Cohen, Jim Hirshorn, Anthony Bruce, Jonathan Zabusky, Jodie McLean, George Krautzel and Will Graylin. This includes a $6 million round raised in September 2020.

According to GoTab, the company processed more than $500 million in gross merchandise value in 2022. In 2021, GoTab was nominated for a RAMMY Award in the Technology Trailblazer category.

“We remain focused on growing our clientele, and our long-term goal is to be the provider of choice for restaurants, bars, food halls, hotels, resorts, stadiums and other event venues,” McLaughlin said. “We will also continue to scale our end-to-end product suite as it makes sense for our customers.”