London food delivery startup Deliveroo said it raised $275 million in a Series E funding round led by private equity and venture capital firms Bridgepoint, existing investor DST Global, and General Catalyst with participation from existing investor Greenoaks Capital. This brings the company’s total funding to date, to $475 million.
Deliveroo was founded in 2013 by William Shu and Greg Orlowski. The company works with over 16,000 restaurants, and over 20,000 self-employed bicycle or motorcycle food delivery couriers or riders. Deliveroo operates in over 84 cities across 12 countries, including the UK, Ireland, France, Germany, Belgium, Spain, Italy, the Netherlands, UAE (Dubai), Hong Kong, Singapore, and Australia.
The deal comes a day after Indonesia’s Go-Jek, a leading ride-hailing motorcycle taxi and on-demand mobile app startup with more than 200,000 “ojek” motor-drivers or riders, said it raised over $550 million in growth equity funding led by KKR & Co. (NYSE: KKR), Warburg Pincus, Farallon Capital and Capital Group Private Markets. The company’s Go-Food is the second largest on-demand food delivery service in the world outside of China, working with over 35,000 Go-Food merchants, and over 15 million meals delivered since it was founded in 2010.
Deliveroo also faces competition in its markets from Just Eat, GrubHub, Hungryhouse, and Uber’s recently launched UberEATs.
Since its $100 million Series D round in November 2015, Deliveroo says it has achieved over 400% growth and reached profitability in a number of markets. It also launched in 29 new cities, added an additional 9,000 new restaurant partners, while continuing to improve its customer retention rates, maintaining a 30 minute average delivery time.
The company has also expanded its service to cover breakfast, express lunch, alcohol and corporate ordering, and striking deals with major partners such as PizzaExpress.
“After seeing strong growth in the markets we launched in November, our new focus is to drive further innovation in food delivery,” said Shu. In particular, I’m excited about exploring completely new ways to solve the hardest problems restaurants face when offering delivery. RooBox is the first illustration of this approach, and innovations like these are at the heart of our mission.”
The new funds will be used to expand the service in both new and existing markets, as well as provide further investment in projects such as RooBox, a pioneering remote kitchen initiative. RooBox gives restaurants access to delivery-only kitchens in key locations, accelerating geographic expansion.