Deliveroo Raises $70 Million for Michelin-Starred Online Menus
Deliveroo, the upscale London online food delivery service, raised $70 million in a funding round led by Index Ventures and Greenoaks Capital.
Existing shareholders Accel Partners and Hoxton Ventures also took part in the Series C investment round, Index Ventures said on its website Tuesday.
Founded by William Shu and Greg Orlowski in 2013, Deliveroo plans to use the proceeds to expand in Europe, the Middle East and in Asia, taking advantage of booming demand for online food delivery. Since completing its last funding round of $25 million in January, Deliveroo has added its first Michelin-starred restaurant, Trishna, in London.
Services such as Deliveroo, Just Eat and GrubHub promise to channel more orders to restaurants for a flat delivery fee or a slice of the revenue. The business model has attracted investors and pushed valuations higher. Berlin-based Delivery Hero raised $110 million in June, valuing the Rocket Internet SE-controlled company at above $3.1 billion.
Deliveroo’s menu-aggregating service allows customers to order food from a variety of restaurants and have it quickly dropped off for a fee of £2.5 in the UK Restaurants using Deliveroo can see sales rise as much as 30 per cent and let them use excess kitchen capacity without fussing over the logistics of delivering their own food, according to Index Ventures. The service has expanded to France, Germany and Ireland.
News by Bloomberg, edited by Hospitality Ireland