Amazon Lends Deliveroo Cash While U.K. Probes Investment
- Deliveroo said at risk of running low on cash without backing
- Loan can be converted to equity if CMA approves Amazon deal
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Amazon.com Inc. has offered Deliveroo a loan after a U.K. probe into the food-delivery startup’s last funding round threatened a cash crunch, people familiar with the matter said.
Without the backing from Amazon, Deliveroo ran the risk of running low on capital, the people said. While the size of the loan is unclear, the London-based company has significant funds to continue operating, they said, asking not to be identified because the matter is private.