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Deliveroo raises massive $275m Series E round to shrug off UberEATS challenge

London-based startup Deliveroo has raised a huge $275m (approx. £210m) funding round as it responds to the continued threat of Uber and other rivals.

The round, which has been led by new investor Bridgepoint Capital, with contributions from Airbnb-backer General Catalyst and existing investors DST Global and Greenoaks Capital.

First reported by Sky News, the Series E funding round will mean the firm, which is available in 84 cities around the world, has reached the much-vaunted ‘unicorn’ bracket of companies which are valued at $1bn or over.

Deliveroo are to use the new investment to fund expansion into more cities and to build upon its B2B off-site kitchen initiative that allows brands to bring their restaurants to areas underserved by bricks and mortar outlets.

In a statement, founder and Chief Executive Will Shu commented: “After seeing strong growth in the markets we launched in November, our new focus is to drive further innovation in food delivery.

“In particular, I’m excited about exploring completely new ways to solve the hardest problems restaurants face when offering delivery.

“RooBox is the first illustration of this approach, and innovations like these are at the heart of our mission. We’re proud and honoured to have the support of Bridgepoint, DST Global and General Catalyst in this endeavour.”

Deliveroo’s predominance in the on-demand food delivery space has been threatened by the entrance of UberEATS, which launched in London in June, and is backed by the US ride-share giant’s bottomless pockets.