A new round of $180 million investment has made in Deliveroo, the food delivery startup Amazon (AMZN) previously invested. Thus, the company has gained an increased market value of over $7 billion. Having such a high valuation, the start-up outperformed one of the largest British retail chains Morrison in capitalization. According to Bloomberg, Deliveroo plans to hold an initial public offering (IPO) in 2021. The IPO is expected to take place in April.
The previous backers – Durable Capital Partners, Fidelity Management, and Research Company – have helped raise another financing round for the project. The Deliveroo company stated they would be investing in expanding their grocery delivery service. The company will also be working to develop its dark kitchen service, a kitchen designed especially for preparing ready-to-eat meals for delivery only.
Amazon (AMZN) acquired 16% of Deliveroo last August when it was made public. Deliveroo reported in December that it had made a profit for the last six consecutive months. Operational revenue for 2019 was £771.8 million ($1.048 billion), an increase of 62% from the prior year. Additionally, the company’s statement revealed a loss of £319.9 million, which was written off as an investment in the project.
There are currently over 140 thousand restaurants and 110 thousand delivery service employees working with Deliveroo. Based on a Bloomberg Intelligence study, food delivery services’ growth will continue in 2021, but at a slower pace than it did during the quarantine.