Delivery Hero is a Berlin-based local delivery platform. The company announced a €1.4 billion debt financing package to bolster its long-term liquidity position. Management says the capital will be used for general corporate purposes, including potential refinancing of convertible debt at maturity, working capital and guarantees. CEO and co‑founder Niklas Östberg stated the transaction demonstrates Delivery Hero’s ability to access various funding sources and supports a diversified capital structure that provides financial flexibility. The company has been reshaping its portfolio recently, including selling its stake in Latin‑America’s Rappi and increasing its stake in Spain’s Glovo during 2021. Delivery Hero says the financing supports its objective of delivering superior growth while approaching group‑level profitability. Delivery Hero operates an online food ordering and delivery marketplace used by over 150,000 restaurants across more than 40 countries. The company processed 171 million orders in 2016, a 65% increase year over year. Growth was bolstered in part by a merger with a major online takeout rival late last year. Delivery Hero has raised significant capital to fund expansion and operational scaling, bringing total capital raised to at least $1.4 billion. Management and investors are publicly discussing the potential for an initial public offering as the company continues to expand its global footprint. Delivery Hero operates an online food-ordering platform and processes orders across a portfolio of regional brands, including the premium delivery brand Foodora. The company reported 83 million processed orders in H1 2016 and said its core business was already operating profitably while continuing heavy investment in Foodora. Orders grew organically by 45% year-over-year in H1 2016, with July showing 55% organic year-over-year growth; revenues for the first half of 2016 grew by 53%. Amid reports of financial strain, Delivery Hero said it had raised additional capital on very good terms and the group maintains a positive growth outlook driven by strong positions in attractive regions such as Turkey (Yemeksepeti). CEO Niklas Östberg indicated the company might be ready for an IPO in early 2017. Founded in 2011 and based in Berlin, Delivery Hero is active in 33 countries. Delivery Hero operates an online takeout and delivery platform with a network of 200,000 restaurants across 34 countries. It processes roughly 10 million orders per month and generates about $165 million in monthly sales for its restaurant network. The company has grown rapidly through acquisitions, including Yemeksepeti for $589 million and Pizza.de, and continues to pursue regional consolidation. Delivery Hero says it will use its latest financing for selective acquisitions and intensive product innovation. Management has signaled interest in expanding beyond online takeout into adjacent food categories such as meal kits, grocery delivery, or high-end restaurant delivery. Delivery Hero is a global network of online ordering platforms for food, providing ordering capability for more than 90,000 partner restaurants in 24 countries. It is market leader in 19 of those countries and its restaurant partners generate more than €1 billion in annual sales via online orders or mobile applications. The network delivers more than 12 million meals every month and employs over 1,500 people, including 500 at its Berlin headquarters. Delivery Hero plans to use the recently announced financing primarily to expand its position as a technology leader and to build its long-term vision to transform the food delivery industry. The company says it aims to improve transparency, quality, convenience, and speed as part of that vision. Delivery Hero and the online food ordering entities within Rocket Internet will continue to operate separately while cooperating closely across many functions.

Total raised

$4.1B

Funding rounds

11

Latest round

Debt Financing

Latest activity

Apr 2022