London delivery giant Deliveroo could go public on the London Stock Exchange as soon as April, regardless of posting 2020 losses totaling $309 million (£223.7 million), the Financial Times reported on Monday (March 8).
Deliveroo’s losses are significantly lower than 2019’s £317 million. While the eight-year-old company is still in the red, its revenues in 2020. Sales grew 54 percent to £4.1 billion last year, up from £2.5 billion the previous year. Included in that growth is a 65 percent expansion in net revenue to £599 million in the U.K. and Ireland in 2020.
The Amazon-based startup could be valued as high as $10 billion (£7.2 billion) when it files for an initial public offering (IPO). It filed an intention to float on Monday (March 8), which indicated that six million people place orders on Deliveroo with more than 115,000 restaurants and retailers in its network. Gross transaction value increased 64 percent to £4.1 billion last year.
Will Shu, co-founder and CEO of Deliveroo, said in the filing that he was never “one of those Silicon Valley types” overflowing with endless new ideas for startups. The only thing he was “fanatically obsessed” about was London restaurant delivery. He said that thinking back to his first 2013 pitch deck, he can see how far the company has grown, expanding into delivering groceries, launching delivery-only kitchens and creating digital solutions, “… things I would not have been able to contemplate back then.”
A date for the IPO has not yet been set, but it could be as soon as April. Goldman Sachs and J.P. Morgan Cazenove will be joint global coordinators.
Deliveroo just introduced the Communities Fund, which will extend assistance to communities where the company does business. It is expected to launch after the company’s IPO.
The company said last week that it would go public in London with a time-limited, dual-class share structure, which keeps Shu in control of the company. The new structure gives founders more control after a public filing