Deliveroo, the online food delivery platform, has raised $25m (£16.5m), in Series B funding to expand its UK and international platforms.
The investment, which is led by Accel Partners, with participation from Index Ventures, Hoxton Ventures and Hummingbird Ventures, will enable the company to “aggressively” roll out its service to neighbourhoods across the UK and internationally, with a particular focus on hiring and marketing activities.
Deliveroo has expanded significantly since its Series A funding round announced eight months ago when it delivered to a few thousand customers in a handful of London boroughs. Today, it serves over 120 neighbourhoods in London, Brighton and Manchester and has built a customer base of over 50,000 who use the service regularly.
“This is a significant moment for Deliveroo. We’ve seen high demand for our service in London and Brighton and are excited to be launching this week in Manchester, the first step in our ambitious expansion plan. Today’s funding gives us the ammunition we need to bring our first-class delivery service to a much wider audience, and we’re delighted to have the Accel team and our existing investors on board to help us reach our goal,” said William Shu, chief executive of Deliveroo.
Accel Partners’ Fred Destin will join the board, while Luciana Lixandru will be an observer. Destin said: “Will, Greg and the team have achieved very impressive traction to date and created a service that speaks to a much larger global trend in how people want to discover and experience local food. Both customers and restaurants absolutely love Deliveroo; we’re looking forward to helping the team scale even faster and bring that delightful food experience to a much larger audience.”
Martin Mignot from Index Ventures, the venture capital firm that led the company’s Series A round, added: “Deliveroo is one of the fastest growing companies in our portfolio. The main reason behind this growth is its win-win-win proposition. Customers get access to good food they couldn’t get delivered before, restaurants increase their revenues and hundreds of drivers generate new income.”
Founded in 2013 by William Shu and Greg Orlowski, Deliveroo is focused on providing the ultimate food delivery experience. Customers use the service to get meals from a variety of local independent and high-quality chain restaurants, delivered to their homes by Deliveroo drivers and cyclists.
