Deliveroo has seen its market valuation rocket to $7 billion after its latest round of funding as it prepares for its blockbuster IPO.
Amazon, alongside other key investors including Fidelity Management and Durable Capital Partners, helped Deliveroo raise $180 million (£132 million) in new funding last week.
This valued the delivery giant at $7 billion not including the new funds raised, nearly double the $4 billion it was valued at during its last major funding round in 2019.
According to Deliveroo’s chief executive Will Shu, this money will be put towards “new tech tools” to support restaurants and riders while helping the young company “continue to innovate” in areas like grocery delivery, which has expanded dramatically since the start of the pandemic.
While grocery delivery was a fledgling service for Deliveroo at the beginning of last year, the pandemic has seen it sign 36 deals with major retailers including Aldi and Waitrose, helping it double its revenues since the start of the pandemic.
Alongside a major investment from Amazon, which now owns 16 per cent of the company, this has sparked massive interest in Deliveroo’s stock ahead of its hotly anticipated IPO later this year.
In November, it was revealed that Deliveroo was appointing retail heavyweight Claudia Arney to its board, suggesting it could seek a premium listing on the London Stock Exchange, making it eligible for inclusion in the blue-chip indices.
A month earlier Deliveroo appointed Goldman Sachs to start working on plans to take it public, following months of speculation.
While it is as yet unclear whether Deliveroo will list on the London or New York stock exchange, it is understood that the listing could take place as soon as April.