Restaurant delivery platform Deliveroo raises £2.75m to fund international expansion
Index Ventures-led backing follows “strong demand” for service in London
London-based food delivery platform Deliveroo today announced the completion of a £2.75m round of funding, set to back an expansion of its offering across the UK and internationally.
Founded in February 2013 by William Shu and Greg Orlowski, Deliveroo works as a managed delivery platform for restaurants, allowing them to offer a takeaway service to diners without having to manage the technology or logistics themselves.
The start-up says its restaurant partners can increase revenues by 10% to 20% by adding a delivery service using the Deliveroo platform.
Since launch Deliveroo has grown rapidly, with high-profile clients including Carluccio’s and Tommi’s Burgers now signed up to the platform and “strong demand” from customers – the start-up claims that one user has already spent in excess of £15,000 on the site.
The £2.75m funding was led by Index Ventures, with input from other investors including seed-focused tech VC firm Hoxton Ventures, onefinestay founder Greg Marsh, and Housetrip founder Arnaud Bertrand.
It will be used to invest in its logistics technology and delivery platform in advance of the opening of its first international office later this year.
William Shu, co-founder and CEO of Deliveroo, said: “I formulated the idea for Deliveroo because I was consistently dissatisfied by London’s takeaway options.
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“In New York, where I previously lived and worked, I was able to enjoy food from all my favourite restaurants at home. In the UK, the option just wasn’t available – and it became my mission to change that.
“We’re really excited to have Index and Hoxton on board as investors. Our focus to date has been on establishing our core proposition, and this Series A round will help us fulfil our expansion plans, as well as marketing and technology development,”
Index Ventures’ Martin Mignot will join the Deliveroo board as part of the deal. He said: “William and Greg are absolute machines: what they built with virtually no money and a skeleton team is extremely impressive.
“As always, timing is everything when launching a new company: they have been able to leverage smartphone penetration (all of their drivers, the “Roomen”, possess their own iPhones) to provide an obvious service and a great experience to consumers, in a way that simply was not cost-effective before.
“Their obsessive focus on the delivery experience, and the unique software they have developed to make it happen at scale, put them in a very strong position to rapidly scale their service across Europe and beyond.”