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British food-delivery firm Deliveroo plans to raise £1 billion ($1.4 billion) when it floats on the London Stock Exchange later this year, the firm announced Monday.
Sources previously told Insider in January that Deliveroo was aiming for an April IPO, and that it could be valued as highly as $10 billion to $13 billion, although that figure may change as the firm moves through its investor roadshow.
The Amazon-backed firm, valued at $7 billion, hopes to capitalize on a boom in business during the pandemic, as restaurant and pub closures resulted in an uptick in food delivery. The firm operates similarly to Uber Eats and DoorDash in the US, offering food and grocery delivery via an app and using a network of delivery riders to ferry out items to customers.
Despite the increase in business, Deliveroo remains heavily loss-making. The firm lost £231.6 million ($309 million) in 2020, a 30% improvement on 2019’s losses. Insider understands that the firm increased its revenue by 54% to £1.2 billion ($1.7 billion). And underlying gross profit was up 89.5% to £358 million ($495 million) in 2020, from £189 million ($261 million) the previous year.
CEO Will Shu is set to retain control over the firm after the IPO via a dual-class share structure that will give him 20 votes per share, while other shareholders will have a single vote per share. Deliveroo’s customers are also being offered the opportunity to invest early via financial-technology platform PrimaryBid.
Insider calculated that Shu owns around 7% of the business. Other shareholders include Amazon at 16%, DST Global at 10%, T. Rowe Price, Accel, Greenoaks Capital, and Index Ventures.
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