British delivery power-house Deliveroo said Sunday (Jan. 17) in an announcement that it has raised $180 million in new investments, which push its valuation to $7 billion and come in advance of what the company stated is a “potential initial public offering” (IPO).
The new funding, according to the announcement, comes from two existing investors: Durable Capital Partners and Fidelity Management & Research.
The announcement stated, in part: “The investment will enable Deliveroo to continue investing in developing the best proposition for consumers, riders and restaurants.”
The announcement added that “key areas” the company will deploy the new funding include: “expanding Editions delivery-only kitchen sites globally, working with more partners;” expanding grocery delivery, which “has grown rapidly over the last year;” expanding its Plus subscription service to new locations; and letting restaurants use Deliveroo to get food to customers.
“This investment will help us to continue to innovate, developing new tech tools to support restaurants, to provide riders with more work and to extend choice for customers, bringing them the food they love from more restaurants than ever before,” Will Shu, Deliveroo founder and CEO, said in the announcement.
Durable Capital Partners Managing Partner and Chief Investment Officer Henry Ellenbogen said in the announcement that he has been “impressed with the [Deliveroo] team’s ability to spot opportunities, innovate and adapt to changes in the market. The online food delivery market is nascent and underpenetrated. We believe Deliveroo has the potential to become a much bigger company over time.”
Deliveroo stated in the announcement that it has helped restaurants by funding marketing campaigns to help local eateries, cutting fees for signing up with the service and getting customers’ payments to restaurants faster and at reduced or eliminated fees.
Durable Capital Partners is based in Chevy Chase, Maryland. Fidelity Management & Research is based in Boston.