Deliveroo Raises $100 Million as Food-Delivery Service Expandsby
Upscale food service starts in Asia, Australia, Middle East
Deliveroo raised $70 million in July to grow in Europe
Deliveroo, the upscale London online food-delivery service, raised $100 million in a funding round led by DST Global and Greenoaks Capital to continue its growth to Asia, Australia and the Middle East.
Current shareholders Index Ventures, Accel Partners and Hummingbird Ventures also took part in the series D investment round, Index said on its website Tuesday. Deliveroo has increased daily orders tenfold this year and expanded its service to 50 cities across 12 countries. The company, which raised $70 million in July, is now starting service in Dubai, Hong Kong, Singapore, Melbourne and Sydney.
"We want to bring Deliveroo to as many people as possible," William Shu, chief executive officer and co-founder, said on Bloomberg TV Tuesday. "We want to work with the best restaurants in your local neighborhood and get that food to you in about half an hour. That’s our global view on what the customer wants."
Food-delivery services such as Deliveroo, Just Eat Plc and GrubHub Inc. promise to channel more orders to restaurants for a flat delivery fee or a slice of the revenue. The business model has attracted investors and pushed valuations higher. Berlin-based Delivery Hero raised $110 million in June, valuing the Rocket Internet SE-controlled company at above $3.1 billion, and San Francisco-based DoorDash is in talks to raise financing at a valuation of at least $1 billion.
Deliveroo’s menu-aggregating service allows customers to order food from a variety of restaurants and have it quickly dropped off for a fee of 2.5 pounds ($3.80) in the U.K. Restaurants using Deliveroo can boost sales as much as 30 percent without fussing over the logistics of delivering their own food, according to Index Ventures.