Deliveroo valued at $7bn after latest funding round

UK's food-delivery firm raised $180m from existing investors led by Durable Capital Partners and Fidelity Management & Research Company

Deliveroo completes a new funding round from existing investors of over $180 million. Courtesy Deliveroo.

The latest funding round of food-delivery start-up Deliveroo values the company at more than $7 billion (Dh25.7bn).

The UK-based company raised more than $180 million from existing investors, led by Durable Capital Partners and Fidelity Management & Research Company, it said in a statement on Sunday. It did not provide a breakdown of each investor's contribution to the new round.

"This investment will help us to continue to innovate, developing new tech tools to support restaurants, to provide riders with more work and to extend choice for customers, bringing them the food they love from more restaurants than ever before," Will Shu, founder and chief executive of Deliveroo, said. "We are really pleased our shareholders see the opportunity and growth potential ahead of us.”

The completed financing round comes as the firm eyes a potential initial public offering. Online food-delivery businesses have seen an uptick in demand globally during the Covid-19 pandemic as customers ordered more meals from home during lockdown measures and shop closures.

Deliveroo operates in 800 towns and cities across 12 markets, including the UAE, Kuwait, Australia, Belgium, France, Hong Kong, Italy, Ireland, Netherlands, Singapore, Spain and the UK.

Established in 2013, the London-based start-up has more than 2,000 employees in offices around the world. Its network spans 140,000 restaurants and 110,000 riders globally.

Deliveroo said it will spend the funds on continuing to invest further in its businesses. This includes expanding delivery-only kitchen sites globally, expanding on-demand grocery, growing its subscription services, allowing customers to order delivery via the restaurants’ own websites and new initiatives to support its riders.

"The online food delivery market is nascent and underpenetrated. We believe Deliveroo has the potential to become a much bigger company over time," Henry Ellenbogen, managing partner and chief investment officer at Durable Capital Partners, said.