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Restaurant Software Company Olo Raises $450 Million in IPO

The online ordering company, which works with legacy franchise brands including Five Guys, Wingstop, Jamba Juice and Chili’s, exceeded expectations during its public market debut.

Olo Inc., the online ordering software provider, raised $450 million in an initial public offering Tuesday, surpassing estimates as it started trading Wednesday at a valuation of $3.6 billion. The New York-based company is offering 18 million shares priced at $25 a share, significantly higher than its initial range of $16 to $18. 

Since being founded in 2005, Olo has grown into one of the country’s leading restaurant tech and SaaS e-commerce companies. Olo develops digital ordering, delivery programs and other software-based services to more than 64,000 restaurants across 400 brands including Five Guys, Wingstop, Jamba Juice and Chili’s.

Olo experienced significant growth this year as online ordering boomed during the COVID-19 pandemic. Now, Olo’s impressive IPO suggests investors are confident the company’s success will continue. 

As restaurants turn to third-party delivery providers like Uber Eats or DoorDash as a quick way to launch off-premise services, Olo says its platform can solve many of the challenges commonly associated with these partnerships, such as expensive fees, a lack of quality control and more. 

In its initial public offering filing last month, Olo peaked the interest of investors by showcasing the kind of profits many third-party delivery platforms have notoriously been unable to produce. Olo said it surpassed 1 billion transactions in 2020, generating 94% revenue growth and net income of $3.1 million, according to a prospectus filed with the SEC

“We believe there is an incredible opportunity to add more restaurant customers, sales volume, and product offerings. That’s our not-so-secret formula,” Olo founder and CEO Noah Glass wrote in a letter included in the filing.

The company is listed on the New York Stock Exchange under the symbol OLO.