Business

Deliveroo's latest funding round values firm at over $7 billion

Deliveroo's latest funding round values firm at over $7 billion

London: Deliveroo Hero SE has raised more than $180 million in its latest funding round, valuing the UK online food delivery company at over $7 billion, according to a company statement.

The investment comes as the Amazon.com Inc.-backed firm eyes a potential listing this year, which is expected in or around April.

The funding round, led by existing shareholders Durable Capital Partners LP and Fidelity Management & Research Company LLC, pegs the startup's valuation on a par with U.K. blue-chip grocer J Sainsbury Plc's market capitalization and eclipses that of Wm Morrison Supermarkets Plc.

As lockdowns restrict people's movement and businesses close, food delivery firms like Deliveroo and Just Eat Takeaway.com NV saw a boost as consumers ordered takeaways from home.

Despite the rise in demand, competition for market share remains fierce, with Delivery Hero recently raising as much as $1.6 billion in a share sale to fund potential deals, while Just Eat Takeaway has been making "significant" investments, according to a recent trading update.

Deliveroo said it will continue to invest further in its business, including expanding its on-demand grocery service and "Editions" dark-kitchen concept.