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IPO Olo

Ordering and delivery platform for restaurants
IPO
Medium risk

Revenues in 2018-2020

Invest in IPO Olo

This investment idea is no longer available. New applications are not accepted

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Investment Idea Details
The Company

Olo has developed a platform for restaurant brands that allows customers to place orders directly into the restaurant through all order origination points – from a brand’s own website or app, third party marketplaces, social media platforms, smart speakers, and home assistants. It also provides restaurants with order analytics and other services. Olo platform currently handles nearly 2 million orders per day. Olo’s customers include major publicly traded and the fastest growing private restaurant brands such as Chili’s, Wingstop, Shake Shack, Five Guys, and sweetgreen. Olo has approximately 400 brand customers representing over 64,000 active locations.

Restaurant brands rely on Olo to increase their digital and in-store sales, maximize profitability, establish and maintain direct consumer relationships, and collect, protect, and leverage valuable consumer data. Olo’s well-established platform has led many of the major publicly traded and top 50 fastest growing private restaurant brands in the United States to work with Olo and has been a factor in the company’s high gross brand retention rate. Olo was founded in 2005 in New York.

Market Opportunity

The $1.6 trillion food industry is one of the largest consumer markets in the United States. According to the National Restaurant Association, restaurants accounted for $863 billion of that spend in 2019, surpassing grocery in aggregate consumer spending, before dropping to $659 billion in 2020 as a result of COVID-19. However, consumer spending on restaurants is expected to rebound to $1.1 trillion by 2024 according to analysis by The Freedonia Group.

Consumers today expect more on-demand convenience and personalization from restaurants, particularly through digital channels, but many restaurants lack the in-house infrastructure and expertise to satisfy this increasing demand in a cost-effective manner. Olo provides restaurants with a business-to-business-to-consumer, enterprise-grade, open SaaS platform to manage their complex digital businesses and enable fast and more personalized experiences for their customers.

Risks

The COVID-19 pandemic could materially adversely affect Olo’s business, financial condition, and results of operations.

Olo expects fluctuations in financial results, making it difficult to project future results, and if it fails to meet the expectations of securities analysts or investors with respect to results of operations, its stock price could decline.

The company’s business depends on customers increasing their use of Olo’s platform, and any loss of customers or decline in their use of Olo’s platform could materially and adversely affect results of operations and financial condition.

Financials

Olo has raised a total of $81.3M in funding over 6 rounds from 9 institutional investors, including Tiger Global Management, PayPal Ventures and RRE Ventures.

Olo nearly doubled the gross merchandise value, or GMV, which it defines as the gross value of orders processed through the platform, in each of the last five years and reached nearly $14.6 billion in GMV. The company booked $98M in revenue in 2020. Gross margin is at a high level of 81%. The company is enjoying rapid revenue growth of 94% YoY in 2020. Olo demonstrated positive cash flows from operating activities in 2020. The company has a very loyal customer base. Its dollar-based net revenue retention, which compares revenue from the same set of active customers in one period to the prior year period, was above 120% for each quarter since 2018.

Olo can be compared with other high-growth B2B software companies, like BigCommerce, which is currently trading at 27x sales with revenue growth of 55% and gross margin of 78%. The company is expected to become public on Mar 17. This investment idea has a medium potential return of up to 40% due to market volatility in technology sector.

How IPO Investments Work
1. Collection of funds

2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.

Publication
1 Mar
Threshold amount
$50
2. Buy shares

We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».

Submit applications before
15 Mar
3. Start Bidding

The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.

Start Bidding
17 Mar
Return forecast
Medium (up to 40%)
4. Receiving profit

After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.

End
21 Jun
Early profit fixation

Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.

From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.

The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.

Fee

FOR ENTRY

3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.

FOR EXIT

1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.

SUCCESS

20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.

TO EARLY EXIT

Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.

Advantages Enjoyed by Those Investing with United Traders

RELIABILITY

Our risk managers ensure proper support throughout the entire transaction.

IN THE PROFIT FROM THE FIRST DAY

Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.

LOW ENTRY THRESHOLD

Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.

Invest in IPO Olo

This investment idea is no longer available. New applications are not accepted

View more ideas