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Deliveroo pulled in profits at the “operating level” over the last six months in 2020.
British online food delivery company Deliveroo now has a valuation of over $7 billion after a $180 million funding from investors. According to the announcement, the company said that the recent Series H funding round came from existing investors ahead of its initial public offering (IPO). The company’s founder and chief executive, Will Shu, said that the company is “really pleased” as shareholders see growth potentials in the London-based food delivery company.
Deliveroo revealed the details of its recently-concluded Series H funding round on the 17th of January. The funding round was led by Durable Capital Partners LP, Fidelity Management & Research Company LLC.
Deliveroo’s founder and chief executive, Will Shu, commented on the funding, which raised the company’s valuation to $7 billion. Without stating the amount contributed by each investor, Will Shu highlighted plans for the secured funds. He said:
“This investment will help us to continue to innovate, developing new tech tools to support restaurants, to provide risers with more work and to extend choice for customers, bringing them the food they love from more restaurants than ever before.”
Notably, delivery companies in the UK recorded a spike in customers’ number amid the ongoing pandemic. During the lockdown, several people resorted to online food delivery as there were restrictions in movements. Apart from an increased number of customers, Shu added that Deliveroo’s existing customers also ordered more often in larger quantities.
However, Bloomberg Intelligence Research has predicted that food delivery companies would experience slower growth compared to 2020.
Citing Deliveroo, a Bloomberg report said that Deliveroo pulled in profits at the “operating level” over the last six months in 2020. The report further revealed that the online food delivery company generated $1,048.8 million in operating revenue in 2019, a 62% increase over 2018’s record.
Since its inception in 2013, Deliveroo has partnered with over 140,000 restaurants and about 110,000 riders across the 12 countries where it operates. Deliveroo provides its services in Western Europe, Hong Kong, Australia, Singapore, and the United Arab Emirates.
Deliveroo Valuation Reaches $7 Billion
The managing partner and chief investment officer at Durable Capital Partners LP, Henry Ellenbogen, acknowledged Deliveroo’s potential growth. As stated in the announcement, Ellenbogen said:
“I have been impressed with the team’s ability to spot opportunities, innovative 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.”
Notably, Deliveroo has supported local restaurants, its customers, and riders amid the global health crisis. The London-based company ensured safe deliveries for its consumers and gave free PPE to support riders. Also, Deliveroo reduced onboarding fees for local restaurants and charged 0% commission on Pick Up orders. Also, Deliveroo developed Table Services to help restaurants to accommodate dine-in customers safely.