Deliveroo raises $98m in latest funding round
Delivery firm Deliveroo is valued at $2 billion.
Investors have pumped another $98 million (£74 million) into Deliveroo, bringing its fundraising total to $482 million (£365 million).
The Series F funding round was led by the likes of T Rowe Price Associates and Fidelity Management & Research Company – who have backed tech giants including Facebook and Tesla.
Follow-on investments were made by existing investors including Accel Partners, Index Ventures, General Catalyst and DST Global, who upped their stake in the company, while additional funding was provided by private investors.
Deliveroo said that at $482 million, the company can lay claim to the largest investments for a European or UK tech firm to date, with the company now valued at $2 billion (£1.5 billion).
The funds will be used in part to invest in a programme for “delivery-only kitchens”, that help restaurants expand without upfront costs in an effort to increase food selection and improve delivery times.
Investments will also be made into its tech team – further developing its logistics algorithm and artificial intelligence systems, as well as into further expansion into new markets.
The announcement comes ahead of the launch of its 200th location, with plans to start serving customers in Cannes, France, as of Tuesday November 21.
Deliveroo said the investment will “benefit the wider UK economy”.
“Deliveroo will provide more well-paid and flexible work for riders and will help to generate substantial extra revenues for its restaurant partners.
“Through its expansion Deliveroo is helping to keep great local restaurants in business in high streets across the UK,” the company said in its release.
The delivery firm earlier this month claimed a victory for its riders who want the flexibility of being self-employed rather than to be classed as “workers”, marking the latest case of employment rights in the so-called gig economy.
It came after a Central Arbitration Committee (CAC) rejected an application by the Independent Workers Union of Great Britain to represent drivers in parts of north London, according to Deliveroo.