Deliveroo Seeks To Raise $1.4 Billion Through IPO Stock Sales

U.K.-based Deliveroo is gearing up to raise $1.4 billion in a planned initial public offering (IPO) of stock, CNBC reported. The delivery service, which is backed by Amazon and others, could be valued at around $10 billion after its IPO.

When Deliveroo announced that it had pulled in an additional $180 million in January, the company said it was valued at $7 billion. The company could go public on the London Stock Exchange as soon as April.

The delivery giant posted losses in 2020 of $309 million (£223.7 million). On the other hand, losses were significantly lower than 2019’s £317 million.

Sales grew 64 percent to £4.1 billion last year, up from £2.5 billion the previous year. The company said that six million people place orders on Deliveroo, which has more than 115,000 restaurants and retailers in its network.

Will Shu, co-founder and CEO of Deliveroo, said in a filing that he was never “one of those Silicon Valley types” overflowing with endless new ideas for startups. The only thing he was “fanatically obsessed” about was London restaurant delivery. Thinking back to his first 2013 pitch deck, he said he can see how far the company has grown, expanding into delivering groceries, launching delivery-only kitchens and creating digital solutions, “… things I would not have been able to contemplate back then.”

Now, the company is also working on expanding further into the U.K., looking to add 100 new towns and cities this year. The expansion will allow the company to reach four million more consumers, while the company also looks to grow its reach in 150 of the locations it already serves, Reuters reported.

As for the IPO, CNBC said that Goldman Sachs and J.P. Morgan Cazenove have been appointed as joint global coordinators. The exact IPO date has not been set, but is likely to be in the next few weeks.

A filing last week included details on Deliveroo’s dual-class share structure. The upshot: CEO Shu gets 20 votes per share, while all other shareholders will only be entitled to one vote per share.

Deliveroo is also backed by investors that include Durable Capital Partners, Fidelity, T. Rowe Price, General Catalyst, Index Ventures and Accel.