British online food delivery service Deliveroo has raised more than $180 million in its latest funding round, bringing an estimated value of more than $7 billion. The investment comes as Amazon-backed Deliveroo looks to list on the stock market this year, which is expected to happen in or around April.
The fundraising drive, led by shareholders in Durable Capital Partners and Fidelity Management & Research, seeks to value the company at par with the market value of J Sainsbury’s and thus outperforming that of Wm Morrison Supermarkets.
With public closures restricting people’s movements and causing businesses to close, food delivery companies such as Deliveroo and Just Eat Takeaway have seen growth as people turn to ordering meals from their homes, and despite the increasing demand for the services they provide, the competition for market share is still fierce among them.
Delivery Hero recently raised about $1.6 billion from a stock sale campaign to fund potential deals, while Just Eat is also making significant investments, and Deliveroo says it will increase its investment in the space, including expanding its on-demand grocery delivery service and developing Editions’ ready-to-cook and meal delivery service.
The company stated in December that it had achieved operating profits for more than six consecutive months and achieved operating income in 2019 amounting to £771.8 million ($1048.8 million), 62% higher than the previous year, and added that the estimated loss of £319.9 million in 2019 was due to her investments.
According to expectations, standard commissions in this field may reach 30%, and its growth in 2021 will depend in part on the success of vaccine programs for the virus.