Amazon-backed food delivery firm Deliveroo is now worth above $7 billion after a $180 million pre-IPO funding round
- Food delivery firm
Deliveroois now worth north of $7 billion after raising $180 million in fresh funding.
- The Amazon-backed company is preparing to go public later in 2021.
- Insider reported this week that UK-based Deliveroo could be valued at up to $13.6 billion when it floats, with one source pegging April for an
Amazon-backed food delivery firm Deliveroo is now valued above $7 billion after raising $180 million in fresh capital.
The new round was led by two of Deliveroo's existing backers, Durable Capital Partners and Fidelity. Both are investors that put money into public as well as private firms.UK-headquartered Deliveroo, which has experienced a boom in custom amid national lockdowns, also on Sunday confirmed plans for a stock market debut. The company, though run by American CEO Will Shu, is expected to list on London's Stock Exchange.
Insider reported earlier this week that an IPO could value Deliveroo at £10 billion ($13.6 billion), and that the firm was potentially eyeing an April float.That Durable Capital and Fidelity are upping their stakes now signals confidence in Deliveroo's prospective share price and future growth. As one industry source put it: "Why buy in at $13 billion when you can buy in at $7 billion now?"
The gambit has worked before.Both Durable Capital and Fidelity invested in Deliveroo's US equivalent,
It was founded in 2013 by Shu, formerly an investment banker, and Greg Orlowski. Orlowski left in 2016, and Shu remains the CEO of the business.
An IPO would cap a rollercoaster year for the firm.As is typical for high-growth, venture capital-backed firms, Deliveroo has been mostly loss-making to date. As the UK, its primary market, went into lockdown in the spring and restaurants shuttered, the firm warned it may collapse.
The situation was exacerbated by the UK's competition regulator denying Deliveroo access to a large tranche of $575 million in funding, led by Amazon in 2019, on competition grounds. Deliveroo laid off about 300 staffers to reduce costs.
The regulator eventually cleared the funding in April, concluding there was no antitrust threat from
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