UK – British online meal delivery service Deliveroo has achieved a US$7 billion+ valuation following a successful series H funding that saw the company raise more than US$180 million from existing investors.
The round was led by Fidelity Management and Research Company, and Durable Capital Partners.
Deliveroo says that it will use the funds raised in its latest financing round to continue to invest in the company’s growth and in enhancements to its services for restaurants, riders and consumers.
Examples of areas in which the new capital will be used include: expanding the company’s Editions delivery-only kitchen sites globally; extending Deliveroo’s Plus subscription service; and expanding on-demand grocery services.
“This investment will help us to continue to innovate and develop new tech tools to support restaurants,” Will Shu, founder and CEO of Deliveroo, said.
Shu further noted that the funds will enable the company, “provide riders with more work and to extend choice for customers, bringing them the food they love from more restaurants than ever before.”
“We are really pleased our shareholders see the opportunity and growth potential ahead of us.”
The investment comes ahead of a potential initial public offering, which would mark the biggest new share issue in London for three years, according to Reuters.
Henry Ellenbogen, managing partner and chief investment officer at Durable Capital Partners, said: “I have been impressed with the team’s ability to spot opportunities, innovate and adapt to changes in the market.”
“The online food delivery market is nascent and underpenetrated. We believe Deliveroo has the potential to become a much bigger company over time.”
Deliveroo operates in over two hundred locations across the United Kingdom, the Netherlands, France, Belgium, Ireland, Spain, Italy, Australia, New Zealand, Singapore, Hong Kong, the United Arab Emirates and Kuwait.
Its subsidiary operation, Deliveroo Editions, focuses on growing a network of ghost kitchens—kitchens located off-site from restaurants for the preparation of delivery-only meals.
Deliveroo’s series H comes a year and 5 months after its series G funding where it was able to raise US$575 million from a number of investors led by Amazon.
As of 2020, the company has not yet made a profit but official records show that it has so far been able to raise US$1.53 billion dollars.
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