Tag Archives: deliveroo

Food delivery app Deliveroo raises $100m to expand beyond Europe

The premium food delivery app has closed its third funding round this year, bringing its total raised in 2015 to $195m

Deliveroo has raised $100m (£66m) from a group of venture capital funds including Facebook investors Accel and DST Global to fuel the London-based food delivery start-up’s international expansion.

The funding round is Deliveroo’s third this year, bringing its total capital raised in the past 12 months to $195m.

Will Shu, chief executive, said the investment would fuel the company’s expansion to Dubai, Hong Kong, Singapore, Melbourne and Sydney.

“This is our first foray outside Europe. We’re now very much a global company and that’s significant,” said Mr Shu, a former investment banker who founded the company alongside software developer Greg Orlowski in 2013.

The Series D funding round was led by Yuri Milner’s investment firm DST Global – which has backed Twitter, Spotify and Airbnb – and San Francisco-based Greenoaks Capital.

Deliveroo also raised funds from existing investors Accel, Hummingbird Ventures and Index Ventures, whose portfolios include Facebook, Asos and King Entertainment.

In addition to its international expansion, the Soho-based businesses will ramp up its marketing and hiring activities to increase its presence in its current markets amid strong competition from other food delivery technology companies such as Just Eat and Hungry House.

Deliveroo differs from its rivals because it connects users with high quality restaurants, from Michelin-starred establishments and independent eateries such as Trishna and Dishoom to upmarket chains including Wagamama, Dirty Burger and Busaba Eathai.

“There’s been a big boom in premium casual dining across the world over the last 10 to 15 years,” Mr Shu said. “In 2001, Paris was either Michelin-starred restaurants or kebab shops, and London wasn’t that far off.

“Now there’s the Parisian take on the burger, Hong Kong’s take on the taco and the Berlin take on dim sum. There’s been a strong movement towards better food in a more casual setting. We’re creating a mainstream product.”

Deliveroo’s daily orders have increased 10-fold since January, when the company took its first step beyond London and opened in Brighton. It has since expanded outside of the UK, launching first in Dublin in April and then branching out into another 19 European cities.

Online transactions now account for 40pc of all food delivery orders in the UK, up from 8pc in 2008, according to the market research firm NPD Group.

Just Eat, the online food ordering service that launched in 2001, raised £1.47bn when it listed on the London Stock Exchange last year in the UK’s largest technology flotation in eight years.

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