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Amazon-backed food delivery company Deliveroo is in the early stages of exploring an IPO, a source with knowledge of the matter told Business Insider.
The company, which rivals services like Uber Eats and Just Eat, is mulling potential advisers to help prepare its executives for increased visibility, the person said.
Bloomberg first reported the news on Thursday, pegging an IPO date to 2021. Deliveroo declined to comment.
The IPO chatter indicates that Deliveroo may be in a position of relative financial strength, after years of losses and a turbulent 2020 involving an in-depth regulatory probe and the coronavirus pandemic.not
While Deliveroo CEO Will Shu told Business Insider back in 2017 that an IPO would be “somewhat logical” for the company, the firm has in fact considered alternative exits over the last few years.
The firm held informal sale talks with Amazon and more serious sale discussions with Uber. Neither came off, and Deliveroo went on to add Amazon as a major investor as part of a huge $575 million Series G round in the summer of 2019.
That investment hit a roadblock after the UK’s competition regulator decided to freeze Amazon’s portion of the investment over antitrust concerns. The freeze deprived Deliveroo of a large slug of cash as the coronavirus pandemic hit, and the company warned the regulator that it might go bust.
The watchdog waved through the investment in April, and subsequently revealed that Deliveroo had gone from near-bankruptcy to profitability in May and June.
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Source:: Business Insider
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