Technology company Deliveroo today announced that it has raised $385 million of new funding. This values the company at over $2 billion dollars – making it the fastest growing UK tech company and one of Europe’s biggest tech success stories.
The funding is led by funds and accounts advised by T. Rowe Price Associates, Inc. and Fidelity Management & Research Company, investment managers who have previously backed global technology companies including Facebook, AirBnB and Tesla. Existing investors DST Global, General Catalyst, Index Ventures, and Accel Partners are also making follow-on investments, increasing their positions in the company.
This new funding will allow Deliveroo to invest heavily in enabling more people to order great local restaurant food – quickly – to their front door. The company has three priority growth areas in which it will focus investment:
First, rapid growth in Deliveroo’s Editions programme of delivery-only kitchens which allows partner restaurants to expand without any of the traditional upfront costs, whilst increasing food selection for customers and optimising delivery times.
Second, growth of its technology team, who will focus on continuing to make improvements to Deliveroo’s world-leading real-time logistics algorithm and artificial intelligence systems while improving riders’ working experience and continuing to develop Deliveroo’s products for restaurants and consumers.
Third, rapid expansion into new towns, cities and countries. This will allow more people to order great food quickly to their door from their favourite local restaurants.
Will Shu, founder and CEO of Deliveroo, said: “I remember how excited I was carrying out our first delivery. I hoped that people would love being able to order great food from their favourite local restaurants straight to their front door. 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.
So I am extremely pleased that our new investors share this vision and have decided to make such a significant investment in our future.
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.”
Henry Ellenbogen, portfolio manager at T. Rowe Price New Horizons Fund said: “Deliveroo has built an impressive service that is providing fast delivery of high quality food in over 150 cities across the world. We believe they have a world class team, strong technology capabilities, and the right business model. We are excited to see this capital put to use to build out their Editions concept and expand their geographic footprint.”
“Deliveroo is a global innovation leader in technology, logistics and food”, said Tom Stafford, Managing Partner at DST Global. “We are excited to continue our partnership with Will and the team at Deliveroo as they build the future of food delivery.”