May 15 (Reuters) - Enterprise software maker

Restaurant365 said on Wednesday it had raised $175 million in a

funding round led by tech-focused ICONIQ Growth, with

participation from existing private equity investors KKR

and L Catterton.

WHY IT'S IMPORTANT

Private venture capital funding is on a slow road to

recovery in 2024 after a downturn that lasted over two years

amid higher-for-longer interest rates and investors shunning

most tech startups.

As the stock markets rally and the appetite for IPOs

returns, startups are also expected to see a resurgence in

interest as private investors seek lucrative exits through these

stock sales.

Private equity-backed enterprise software companies were

among the big winners of the record boom in U.S. IPOs in 2021.

CONTEXT

Restaurant365, which makes back-office management software

for restaurants, did not disclose the valuation at which the

latest round was raised. It had crossed the key $1 billion

'unicorn' benchmark in a fundraise in May 2023.

The company's prominent customers include industry giant Yum

Brands' ( YUM ) fast-food chains such as KFC ( YUM ), Taco Bell and

Pizza Hut, as well as Restaurant Brands' Burger King.

Its platform also offers tip automation, task management and

restaurant intelligence dashboards.

The funding round follows Restaurant365's acquisition of

ExpandShare in April, which uses AI to deliver and track

restaurant training content.

KEY QUOTES

"Proceeds from the round will help replenish the balance

sheet from our recent acquisition of ExpandShare. We are also

earmarking some funds for future acquisitions," CEO Tony Smith

told Reuters.

"Whether enterprise brands are reducing spending or

investing, they always need a seamless flow of information to

quickly identify areas in need of improvement," said Will

Griffith, Founding Partner of ICONIQ Growth.

WHAT'S NEXT

On plans to go public, Smith said the company is keeping its

options open.

"An IPO may eventually be right for Restaurant365, but right

now we are focused on maintaining our 12 straight

quarter-over-quarter growth streak," he added.

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