Kirkland-based payments startup Cheq has been acquired by Cantaloupe Inc. (Nasdaq: CTLP), a payments company headquartered in the Philadelphia area.
The companies announced the deal in a release Feb. 1 but didn't disclose the financial terms. Cheq is being acquired after raising $13.3 million in October 2022.
"Joining forces will allow us to bring their market-leading innovation to our current customer base, and to expand our technology offering through Cantaloupe’s national and international distribution network,” Thomas Lapham, co-founder and CEO of Cheq, said in a release.
Cheq's $13.3 million round in 2022 consisted of an $8 million seed round, while the rest of the funding was in the form of future equity notes. The company had 18 full-time employees at the time of the funding and currently has 43 employees listed on LinkedIn.
Cheq was founded in 2021. The company helps businesses attract customers by alerting nearby consumers about deals and coupons, and it can tell consumers inside stadiums which nearby bars and restaurants will still be open after an event.
With Cheq, consumers can order food and drinks from their stadium seats and either pick their purchases up or have them delivered. A social function, meanwhile, can let friends and groups know who has checked in where, and restaurants are alerted to the dietary preferences of arriving customers. Cheq's customers include the Washington Commanders, the Miami Marlins and the Florida Panthers.
Cheq acquired the Bite of Seattle out of receivership for $90,000 last year, but the company's app-based payment system generated complaints during the festival from customers and vendors for causing glitchy transactions, among other issues. Cheq sold the event to California-based food festival operator FoodieLand in January.
Cantaloupe, meanwhile, was founded in 1992. Cantaloupe's technology allows clients to accept cashless payments at vending machines, laundromats, gaming machines and more. According to the company, it has more than 250 employees and 29,670 customers. Cantaloupe first went public in 1995.
Cantaloupe generated $62.7 million in revenue during the first quarter of fiscal year 2024, up 8% from the same period a year prior.
Cheq's investors include WestRiver Group, Harvard's Yard Ventures and Flamingo Capital. Seattle-based WestRiver Group has invested in companies like DocuSign and Topgolf.
