European food delivery company Deliveroo has raised a whopping $385 million at a valuation of more than $2 billion, according to a statement issued by the company this morning.
Prior to now Deliveroo had raised around $475 million, the most recent tranche coming via a $275 million series E round last August. With another $385 million in the bank the company said that it will invest across three “priority growth areas,” including its kitchens-only “Editions” program that launched in London back in April; expanding its technology team including investments across artificial intelligence (AI) systems; and launch in new markets.
“I remember how excited I was carrying out our first delivery,” noted cofounder and CEO Will Shu. “I hoped that people would love being able to order great food from their favorite local restaurants straight to their front door. I am proud that just four years on, millions of people use Deliveroo in over 150 cities around the world.”
Founded out of London in 2013 by Will Shu and Greg Orlowski, Deliveroo differs from the likes of GrubHub and Just Eat in that it focuses on the “premium” end of the culinary spectrum, and many of the eateries on board haven’t traditionally offered takeaway or food delivery services. The company also provides all the transport and ordering infrastructure, offering its own drivers and cyclists for restaurants to use.
Earlier this year, Deliveroo launched a new platform for restaurants to open delivery-only kitchens, while shortly after the company made its first ever acquisition when it snapped up Manhattan-based Maple, a startup that prepared and delivered meals without using restaurants.
Deliveroo is now available in more than 150 cities, and although most of those are in Europe, the company has also launched in Australia, Hong Kong, Singapore, and the United Arab Emirates (UAE).
The funding announcement comes as Deliveroo reported a 611 percent growth in revenues in 2016, though its aggressive expansion has also led to a rise in costs, with losses growing from £30.1 million ($40 million) to £129.1 million ($174 million) last year.
Deliveroo’s funding round was led by “funds and accounts” advised by asset management companies T. Rowe Price Associates and Fidelity Management & Research Company, while existing investors also contributed to the round, including DST Global, General Catalyst, Index Ventures, and Accel Partners.