Deliveroo has secured £133 million in a Series H investment round.
The funding, from existing investors, values the London-based food delivery app at more than £5 billion as it eyes a potential IPO.
The round was led by Durable Capital Partners LP and Fidelity Management & Research Company LLC.
Deliveroo said it reflected strong demand from existing shareholders to invest in the company, given the significant growth potential in the online food delivery sector.
It plans to expand its Editions delivery-only kitchen sites globally, working with more partners; expand its on–demand grocery service; extend its Plus subscription service; and offer its Signature service to restaurants, enabling customers to order delivery via restaurants’ own websites.
“At Deliveroo we are always focused on developing the best proposition for consumers, riders and restaurants,” said founder and CEO Will Shu.
“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.
“We are really pleased our shareholders see the opportunity and growth potential ahead of us.”
Henry Ellenbogen, managing partner and chief investment officer at Durable Capital Partners LP, said: “I have been impressed with the 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.”
During COVID-19, Deliveroo has supported local restaurants through targeted marketing campaigns, reducing onboarding fees, increasing the speed of payments, developing new services such as Table Service and charging 0% commission on Pick Up orders.
It has also supported the NHS throughout the pandemic, delivering hundreds of thousands of free meals.