Deliveroo is reportedly planning to launch its long-awaited IPO process as early as March 8th. This is date that Sky News reported as being the likely launch of the prospectus to formally kick off the process.
Amazon-backed Deliveroo is sure to get a lot of attention from both institutional and retail investors with its high profile name and solid growth prospects ensuring this is going to be one of the most eagerly-anticipated London IPOs of 2021. It should also mark another strong tech listing for the London market, which seems set for a blockbuster year of listings as the economy emerges from the pandemic.
Deliveroo was last valued at around $7bn after completing a $180m fundraise last month. That’s up almost double from the previous fundraise. The company reported a loss of £317.7m in 2019, up a third from 2018, on revenues that rose 62% to £771.8m. Detailed financials for 2020 should be forthcoming when the IPO process kicks off officially.
As restaurants have been forced to close their doors, Deliveroo has emerged as one of the winners from the pandemic. It has also struck a number of deals with supermarkets to branch out into groceries, widening its footprint and reaching new demographics. Lord Wolfson, the Next boss, has recently joined the board, which can only be a positive. It might also point to Deliveroo seeing its partnerships with Waitrose, M&S, WM Morrison etc as something more than just for the lockdown era.
Whilst the backdrop is structurally positive for delivery apps, competition is fierce. JustEatTakeaway.com recently announced plans for much more investment in London and its own courier network as it seeks to take on Deliveroo and other rivals. Valuations will look stretched, but for good reason: we know investors continue to pay a premium for growth and Deliveroo can deliver this along with your lunch. As the recent stock market debuts of The Hut Group and Moonpig prove, the UK market is hungry for new offerings, for growth and for tech – Deliveroo ticks all three boxes.
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