Tabbedout raises $7.75 million for expansion

Oct 11, 2013
Austin American Statesman

Austin-based tech company Tabbedout, whose app lets restaurant and bar patrons pay their tabs using a mobile phone, has raised $7.75 million for expansion


The company, which was founded in 2009, has experienced rapid growth of its mobile payment software. Its app is now used in more than 5,000 locations nationwide. That’s up from about 1,000 locations a year ago


Tabbedout’s customers include TGI Friday’s, Famous Dave’s and the Greene Turtle restaurant chains


Investors in the new round were NEA, Heartland Payment Systems and Morgan Creek Capital. Tabbedout has raised a total of about $17 million


The Tabbedout app is available for free on iPhone and Android phones. Users store their encrypted credit card information on the app, which is linked to the computer systems used at each business


The new funding will allow Tabbedout to increase its 31-person staff. The company, which has offices on West Sixth Street, plans to add 20 workers over the next year. It is hiring in sales, marketing and product development


Tabbedout has grown its customer base by changing its sales model, Broeker said. The company initially pursued restaurant and bar customers individually; now it has partnered with five payment processing companies, which resell the software


The National Restaurant Association and research analyst firm Double Diamond Group estimate that the market for hospitality mobile payments is 650,000 locations nationwide


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