UK-based online food ordering service Deliveroo revealed today that it is set to raise $575m in a series G round led by e-commerce, cloud computing and consumer technology group Amazon.
Investment and financial services group Fidelity Management and Research, asset management firm T. Rowe Price and investment firm Greenoaks Capital also contributed to the round, which will be formally completed once the company secures regulatory approval.
Deliveroo runs an app-based food delivery service that spans more than 500 cities and towns across 14 countries in Europe, East Asia, the Middle East and Australia.
The series G proceeds will be put towards expanding the company’s delivery presence and growing its engineering team. It also plans to follow the lead of counterparts such as India-based Swiggy by establishing delivery-only kitchens that can skip out restaurant middlemen.
The round increased Deliveroo’s overall funding to $1.53bn, $275m of which came in a 2016 series E round co-led by Bridgepoint, DST Global and General Catalyst that included Greenoaks and Nokia Growth Partners, prior to its spinoff from communications technology producer Nokia into NGP Capital.
Deliveroo then closed a $482m series F round in late 2017 that was co-led by Fidelity Management & Research and T. Rowe Price and backed by DST Global, General Catalyst, Index Ventures, Accel and unnamed individual investors, valuing it at more than $2bn.
Accel, Index Ventures, Greenoaks and DST Global were all existing backers, having joined Hummingbird Ventures for Deliveroo’s $100m series D round in 2015.
Although Deliveroo has not disclosed the valuation at which it raised the series G cash, reports in November 2018 suggested that ride hailing service Uber had backed away from a potential acquisition because the $4bn price Deliveroo was seeking was far higher than it was willing to go.
