Deliveroo is now worth more than $2bn as huge new investment confirmed


Top investors have backed UK tech startup Deliveroo (Source: Getty)

British tech startup Deliveroo is now valued at more than $2bn after landing investment from top US investors.

A new round of funding totaling $385m has been confirmed, escalating the food delivery firm into the upper echelons of global tech stars.

The $385m in fresh funding comes from new investors T Rowe Price and Fidelity, along with previous backers Accel Partners, Index Ventures, General Catalyst and DST Global.

Read more: Deliveroo's sales rocket by more than 600 per cent

The fresh cash will go toward global expansion of the service, which delivers restaurant quality meals to people's doors and operates in more than 1000 cities around the world.

That will include rolling out Deliveroo Editions mroe widely, a concept which offers space for preparing food for delivery but without the need for sit-in restaurant space.

"I am proud that just four years on, millions of people use Deliveroo in over 150 cities around the world. This is all thanks to the hard work of our riders, the great restaurants that we work with and our brilliant customers," said Deliveroo founder and chief executive Will Shu.

"So I am extremely pleased that our new investors share this vision and have decided to make such a significant investment in our future.

Read more: Deliveroo's testing out helmet cameras after acid attacks

"With this funding we will invest further in our delivery-only kitchens Editions, in developing our technology and in taking Deliveroo to more towns and cities. This investment will take us to the next level and allow our riders to deliver ever more great food directly to people’s doors.”

Figures last week revealed revenues grew to £128.56m in 2016, the latest available, up more than 600 per cent on the prior year. But losses also grew to £129m, up from £30m a year earlier. Losses among young startups are common as cash is ploughed into rapid expansion.

Tags: Startups