Yesterday, news broke that GrubHub Seamless sold a stake of the company to Baltimore-based mutual fund T. Rowe Price. Though details of the transaction were not released, sources report that early investors who sold shares remain shareholders today.
“We are thrilled to add T. Rowe Price to our valued network of strategic stakeholders, further strengthening our position in the industry," Matt Maloney, GrubHub Seamless CEO said in a statement. "Given their impressive track record of successfully investing in high growth, scalable businesses, we will no doubt benefit from their insights as we continue building our restaurant network, attracting new diners and generating profitable growth."
Earlier this month, GrubHub merged with New York City-based Seamless. According to reports of the deal yesterday, late-stage investments such as this one are often indicative of a company’s desire to provide early investors a way to cash in without having to take the company public.
“GrubHub Seamless (and both companies prior to the merger) have always viewed investors as strategic advisors,” says GrubHub Seamless’ PR Manager Abby Hunt. “The company will be able to benefit from the experience T. Rowe has investing in high-growth, scalable businesses.”
Founded in early 2004, GrubHub has secured $84.1 million in venture capital to date and is privately held. Prior to the merger, reports suggested GrubHub was planning an IPO in 2013. As of now, there have been no developments to support this. But don’t discount the possibility—it is only August, after all.