EXCLUSIVE: Seamless to Go Public Next Year
NEW YORK ( TheStreet) - Barely six months after a merger with its biggest competitor, Seamless North America , the New York-based online food delivery service, is charting its course to public markets.
Seamless' management has had discussions about how, and when, it will go public, something that could happen in the latter part of 2014 or early 2015, according to several people familiar with the situation.
In 2012, Seamless independently generated about $85 million in revenue, which was an increase of about 60%. One source familiar with the financials pegged the combined entity's 2013 revenue at more than $200 million, with 40% annual growth. At a 20-times revenue multiple, the company's post-IPO market cap could be between $3 billion and $5 billion.
In an e-mail statement, a Seamless press officer said the company would not comment on speculation. "We are focused on company integration and have many options as we move forward as a combined organization," the official wrote.
Seamless - for the uninitiated - has become a virtual go-to for young urban professionals, who often use the term in place of the long-time descriptor covering the process of ordering food to be delivered at one's place of residence - takeout. Now, it is common to hear customers say they're 'ordering Seamless,' regardless of the nationality or origin of the victuals at issue.
But it's not the individual consumer that serves as Seamless' primary revenue driver. The company has become a de facto caterer for law firms and financial services institutions, which order massive spreads to cover a floor's lunchtime needs.
One source suggested the enterprise user base for Seamless will hold steady, even if other competitors - like Yelp
In late 2012, GrubHub, then an independent company, reportedly hired Citigroup
When the deal closed, the combined company reported it was processing 130,000 orders daily in conjunction with 25,000 restaurants in 500 cities in the U.S. and U.K., along with the orders it processes for business clients.
And while Seamless' cash grab on the heels of Twitter's