Deliveroo, a UK-based online food ordering platform backed by communications equipment manufacturer Nokia, has received £285m ($384m) in new funding, Sky News reported on Saturday.
Financial services group Fidelity and investment firm T. Rowe Price co-led the round, which is expected to be announced officially this week, and which values Deliveroo at $2bn.
The funding follows a decision by telecommunications firm SoftBank’s Vision Fund not to back Deliveroo, and to instead seek a stake in ride hailing app developer Uber, the operator of rival service UberEats.
Founded in 2012, Deliveroo enables consumers to order food from local outlets such as cafés and restaurants through a mobile app and website. The food is delivered by bicycle and motorcycle couriers which work for Deliveroo on a freelance basis.
The commitment from Fidelity and T. Rowe Price is set to help Deliveroo scale its operations ahead of an initial public offering, according to unnamed sources speaking to Sky News.
The company’s sales grew by more than 600% last year to almost £129m, but its losses widened to £130m from £30.1m in 2015.
Deliveroo secured $275m in an August 2016 series E round co-led by Bridgepoint, DST Global and General Catalyst that also featured Nokia and Greenoaks Capital.
The company has raised approximately $859m to date, and its earlier investors include Index Ventures, Hummingbird Ventures and Accel.