Deliveroo has entered unicorn territory after raising $385 million from asset managers Fidelity and T. Rowe Price, which secures the on-demand food delivery service an estimated valuation of more than £1.5 billion.
The deal further underscores investors' interest in the sector, coming after Rocket Internet-backed Delivery Hero received a valuation north of €4 billion when it listed shares in Frankfurt earlier this summer.
While the investment is likely to intensify rumours of an imminent IPO for Deliveroo—both fund managers invested in Facebook and Snapchat prior to the companies going public—it may also trigger consolidation in the space, as the biggest players go head-to-head to snap up smaller peers to scale their operations.
Interested in unicorns? Check out our continually updated list of VC-backed companies that have reached billion-dollar valuations this year.
Article by PitchBook