Deliveroo, the on-demand delivery service for high-quality restaurant meals, today announces a $70m Series C investment round led by Greenoaks Capital and Index Ventures, with participation from existing investors Accel and Hoxton Ventures.
The investment will be used to accelerate Deliveroo’s international expansion and continue to strengthen Deliveroo’s position as the leading player in this space.
Launched in 2013, Deliveroo is focused on providing the ultimate food delivery experience. While the majority of food delivery businesses are online marketplaces for takeaway restaurants, some of which have their own drivers, Deliveroo unlocks new choices by partnering with high-quality restaurants that typically don’t offer delivery. Its proprietary end-to-end technology and logistics platform enables an on-demand model where customers can easily order meals that are delivered directly to their doors by Deliveroo’s team of drivers and cyclists in an average of 32 minutes.
Customers can use the website or the Deliveroo mobile app to order from a variety of high-quality independent and chain restaurants near them. Deliveroo’s hyper-local approach has flourished in areas with high population density and quality restaurants.
By partnering with Deliveroo, restaurants can leverage their excess kitchen capacity and existing locations to generate revenue increases of 30% or more. Over 2,000 restaurants are currently delivering through the platform, including Big Fernand, Boco, Hero, Rachel's, Pizza Chic and Les Pinces.
The Series C follows on quickly from a $25m Series B raised in January of this year. Since then, the business has grown daily orders by 500% and partnered with its first Michelin-starred restaurant, Trishna, in London. It has also launched its service in France, Germany and Ireland and increased its UK reach to 18 towns and cities across the country. In France, Deliveroo currently operates in Paris with further regions planned. The Deliveroo app, released in the UK earlier this month, topped the App Store’s food and drink chart and was named Best New App and Editor’s Choice in a matter of days.
Deliveroo will use the new funding to build on this success, and is planning to expand into new markets in Europe, the Middle East and Asia, while continuing to rollout in its existing markets. It will invest in all areas of the business that support this, including technology, operations and marketing.
William Shu, co-founder and CEO of Deliveroo, said: “We’ve seen huge demand for our service from customers and restaurant partners alike. Although we’ve grown rapidly since inception, we’re extremely excited to be entering into the next phase of our ambitious expansion strategy. We’re committed to building our team of passionate drivers, offering restaurants a new revenue stream and helping more customers around the world discover and enjoy great local food with an unparalleled level of convenience.”
As part of the investment, Greenoaks Capital's Benny Peretz joins the board. Peretz said: "The team at Deliveroo is fanatical about delivering great food. They’ve assembled an extensive network of delicious restaurants and matched it with innovative engineering, data science, and logistics capabilities to provide unparalleled food quality and rapid delivery times. Deliveroo has built a truly seamless and delightful dining experience. It’s rare to see a company so loved by its restaurants and customers."
Martin Mignot, an investor at Index Ventures, said: "We've had the chance to see Will and his team operate for the past 18 months and we've been blown away by how quickly they've managed to grow the business, both in London and outside, while maintaining a consistent user experience and delivery time. Their product has really struck a chord with customers and we're delighted to have the opportunity to invest again, for the third time, and keep on increasing our support to the company as it expands internationally."