Deliveroo eyes $1.4 billion IPO after posting a $309 million loss in 2020

Last week, we wrote about Deliveroo after the Amazon-backed food delivery startup posted a $309 million loss in 2020 ahead of the much-anticipated IPO. In a filing last week, Deliveroo provided details on its dual-class share structure, which will see the company CEO Will Shu get 20 votes per share, while all other shareholders will only be entitled to one vote per share.

Deliveroo announced Monday that it is seeking to raise £1 billion ($1.4 billion) by selling new shares in its upcoming initial public offering on the London Stock Exchange. Deliveroo said that some of its existing shareholders will also sell some of their shares. Deliveroo is also planning to offer £50 million of stock to its customers.

If the IPO goes through as planned, some early investors in Deliveroo stand to make a 60,000% return on their investment, according to a report from the tech media website Sifted on Monday.

The London, England-based Deliveroo was founded in 2013 by Will Shu and Greg Orlowski. The startup makes money by charging restaurants a commission fee, as well as by charging customers a fee per order. It currently operates in two hundred cities.

Deliveroo operates in over 500 towns and cities across 14 markets, including Australia, Belgium, France, Germany, Hong Kong, Italy, Ireland, Netherlands, Singapore, Spain, Taiwan, United Arab Emirates, Kuwait, and the United Kingdom. The Proskauer team was led by London private equity partner Richard Bull, with associates Andrew Houghton and Darpit Mehta supporting him throughout the transaction.

The startup recently raised $180 million in fresh funding giving it a $7 billion valuation. Alongside Amazon, Deliveroo is also backed by Durable Capital Partners, Fidelity, T. Rowe Price, General Catalyst, Index Ventures, and Accel.