Payments Company SpotOn Transact Secures $40 Million

By Noah Long ● June 12, 2019
  • SpotOn Transact announced it raised more than $40 million in a new round of funding led by Franklin Venture Partners

Payments and software company SpotOn Transact has announced recently that it raised $40 million in a new round of funding led by Franklin Venture Partners — which is the venture capital arm of Franklin Templeton. There was also significant participation from Dragoneer Investment Group.

Over the last year, SpotOn Transact grew 400% and the company added more than 3,500 clients in the last 90 days.

With this round of funding, it will accelerate the company’s momentum and fuel expansion into new markets. Plus the company is going to continue growing its field sales teams and will likely hire 100 employees in its SpotOn Restaurant division.

SpotOn was founded by twin brothers Matthew Hyman and Zachary Hyman. Each of them have more than 20 years of payment processing experience and they most recently sold Central Payment to Total System Services (“TSS”) with a final valuation of $840 million. Fintech entrepreneur Doron Friedman — who led Arroweye Solutions for nearly 20 years — is also a co-founder of SpotOn.

SpotOn was built on the premise that SMBs are considered the hallmark of the American economy as they comprise of 99.7% of businesses in the US, but they have been left underserved by fintech companies. Along with traditional payment processing services, SpotOn integrates payment capabilities with software solutions in order to give businesses a set of robust growth-driving tools.

“Small- and medium-sized businesses are starved for solutions to help them grow and function,” said Matt Hyman. “SpotOn is redefining how SMBs operate by offering tools previously only accessible to customers with deep pockets or massive teams. But for SpotOn, it’s more than just tools and technology—it’s about our team’s unique personal approach to help our clients navigate through these new technologies.”

SpotOn’s investment into product development has produced a number of valuable solutions for businesses to choose from like 1.) Fully-Integrated Point-of-Sale (POS) Solutions 2.) Custom Websites 3.) Appointments 4.) Digital Loyalty & Marketing and 5.) Review Management.

These tools also come with personalized service and setup. And the tools are easily accessible to all SpotOn clients. Plus the platform saves businesses time by enabling them to be more efficient and allowing them to transact with their customers however they want.

“SpotOn’s rapid growth and ability to bring real value to the SMB market has been incredibly impressive,” added Franklin Templeton VP and portfolio manager Chris Anderson. “Whether you’re a restaurant looking for a cloud-based point-of-sale solution, a salon looking to book appointments through a custom-built website, or an auto repair shop looking for ways to build relationships with customers, SpotOn has developed a variety of powerful solutions for all types of merchants.”

This past year, SpotOn also acquired EmaginePOS to help build on its restaurant POS offering. And the company also acquired Lifeyo to build on its custom website platform. Plus the company also doubled its sales and service teams.

SpotOn is based in San Francisco and it is expanding the product and tech teams in Chicago and operations in Detroit. Currently, SpotOn has more than 550 employees including 350 field sales reps.