Deliveroo, a UK-based startup that handles delivery services for restaurants and online marketplaces via the hyperlocal model, has raised $100 million in Series D round of funding, led by DST Global and Greenoaks Capital, with participation from existing investors Accel Partners, Hummingbird Ventures and Index Ventures.
With this funding, the company will now step outside European market and will expand its service to Dubai, Hong Kong, Singapore, Melbourne and Sydney.
However, whats more important, is company’s focus to expand to Asia — which will soon probably translate to India. There’s no bigger market for such services in Asia, than India where delivery continues to be an highly unorganised sector.
Deliveroo post its aggressive expansion drive, will operate in 50 cities, across a whopping 12 countries, and plans to use new funds to continue its international expansion. The London upstart could well be yet another Uber-like example for India, wherein a foreign service with massive cash backing sets up major base within the country. And Deliveroo’s pace of capital infusion clearly shows those signs.
Earlier this year, the company, which currently serves more than 5,000 restaurants, had raised $70 million in Series C round of funding. Since the company’s inception in 2013, it has raised around $200 million in funding and will continue to raise more — largely due to backing by firms like DST Global.
Founded by Will Shu and Greg Orlowski, Deliveroo is a technology company focused on marketing, selling and delivering restaurant meals to the household or office.
The platform optimizes food ordering and delivery by integrating web and mobile consumers with restaurant tablet-based point-of-sale order management terminals and the company’s logistics optimization algorithm via delivery driver smartphone software.
Deliveroo isn’t the only company offering such services in Europe. It competes directly with Take Eat Easy, which is backed by German Internet startup factory Rocket Internet. Along with that, it also compete with U.K.-based Just Eat, and Berlin-based Delivery Hero, among others.
In India, there are several startup working in the food-delivery service such as FoodPanda, Swiggy, Yumist, TinyOwl, HolaChef, DeliveryChef, Just Eat, Tasty Khana, etc. and most of them have raised significant amount of investment from Venture Capital firms. However, Deliveroo also targets the hyperlocal delivery segment, and has more capital backing than all of Indian delivery startups combined.
And while funding can’t be the only point of judgment between Deliveroo and its Indian counterparts, it sure as hell makes a significant impact. Till then, its a wait and watch game for us as to when Deliveroo, or any such foreign service steps foot in India.