Deliveroo has announced that it has raised another $275m to bring its total fundraising to $475.59, in a Series E round led by Bridgepoint.
Tech Crunch has suggested that this latest round values the company at more than $1 billion, according it the legendary “Unicorn” status.
Existing investors DST Global and General Catalyst as well as Greenoaks Capital also invested.
“After seeing strong growth in the markets we launched in November, our new focus is to drive further innovation in food delivery. In particular, I’m excited about exploring completely new ways to solve the hardest problems restaurants face when offering delivery”, says Will Shu, Deliveroo founder and CEO.
Shu suggested new products such as the RooBox, a remote kitchen initiative, are central to the company’s mission, and that funds would be allocated for further investments into special projects, as well as expanding the service in both new and existing markets.
The company operates in 84 cities across 12 countries.
RooBox provides restaurants access to delivery-only kitchens in strategic locations, and the company has also recently launched an alcohol delivery service.
Deliveroo says it has grown 400 percent since it’s last round of funding in November last year ($100m), and is hitting its profitability targets in most of its markets, having also added 29 new cities and 9,000 new restaurant partners.
TechCrunch reports that Deliveroo may have been working on the fundraising deal for more than 9 months, and that the company may also have been offered for sale to rival companies such as Delivery Hero, Uber Eats, or Just Eat.
Either way, the food delivery market in London is fiercely competitive, having been “disrupted” by the online platform and smartphone app.
Just Eat, led by CMO Mat Braddy, Founder Jesper Buch and CEO David Buttress, has floated on the LSE and has a valuation in excess of $1bn, thousands of employees and have even launched a robot delivery service which has recently been trialled on London’s streets.
Uber launched their UberEats service in London in June this year, which is available seven days a week between 11am and 11pm.
Uber say more than 150 restaurants have already signed up to the service; Uber Eats is now available in more than 18 cities across the world, with London becoming Europe’s second city to adopt the service, after Paris.
Delivery Hero is a Rocket Internet portfolio company which has raised over $1.33bn over the course of eleven funding rounds. It is now operating in more than 21 countries.
Deliveroo was founded by William Shu and Greg Orlowski, who is also CTO, in 2013, with a mission to “change the way the world thinks about food delivery.”
The start-up has grown at a phenomenal rate, working, according to a recent press release, with 16,000 well-loved restaurants and 20,000 riders, as well as 800 office employees.
Bridgepoint is an intenational Private Equity group which invests in European high-growth businesses, from a network of offices across Europe including Frankfurt, Istanbul, Paris, Madris, Stockholm, Warsaw and Shanghai. The company recently acquired an Italian elite dining group who’s brands include ASK Italian, and Zizzi.
It’s tempting to wonder if Deliveroo and JustEat will emerge as the 2 major players in the food delivery sector in London, or whether it can stay fragmented and “ripe for disruption”.
Are we looking at the new McDonalds and Burger King? With a resurgent Uber, desperate to reallocate funds after the eviction of its ride-sharing service from China, looming large in the rear view mirror?