Food delivery startup Deliveroo has secured $180m in new funding, pushing its valuation to over $7bn ahead of its long-awaited float.
The Series H funding round was led by Durable Capital Partners and Fidelity Management & Research and indicates the strong demand from investors ahead of its IPO.
The British unicorn is preparing for a London listing which is expected to be launched in April and has recently appointed Bank of America Merrill Lynch, Citi, Jefferies and Numis to work on the listing, according to Sky News.
“This investment will help us to continue to innovate, developing new tech tools to support restaurants, to provide riders with more work and to extend choice for customers,” said founder and chief executive Will Shu.
The latest funding will be used to expand its Editions delivery-only kitchen sites and on demand grocery service across its markets.
Deliveroo had a stellar 2020 as consumers turned to the takeaway app as their favourite restaurants and pubs were forced to close their doors due to lockdown.
The company recorded profits for six months in 2020, marking a significant period of growth which just a few years ago saw losses run into the hundreds of millions.
In 2019 losses climbed to £319.9m as it spent money on expansion but in its recent half-year results revealed it had turned a profit in 11 of the 12 markets it operates in.
“I have been impressed with the team’s ability to spot opportunities, innovate and adapt to changes in the market,” said Henry Ellenbogen, managing partner and CIO at Durable Capital Partners. “The online food delivery market is nascent and underpenetrated. We believe Deliveroo has the potential to become a much bigger company over time.”