London-based food delivery platform Deliveroo has raised £2.75m in a funding round led by Index Ventures.
Deliveroo plan to use the funds to expand geographically, improve the tech behind the platform, and help marketing the product.
The food marketplace sector is one in which Index have experience. They have previously invested in Just Eat, who recently listed on the London Stock Exchange.
Hoxton Ventures, whose founding partner Hussein Kanji won an International Hall of Fame award last week, also participated in the round.
Quality delivery
Founded by William Shu and Greg Orlowski, Deliveroo delivers quality restaurant meals to consumers.
Restaurants on the platform include Brindisa, Busaba Eathai, Cay Tre, Goodlife Diner, Gourmet Burger Kitchen, Princi, and Rossopomodoro.
The company prides itself on its delivery speeds. On average, customers receive their food in less than half an hour from submitting their order.
Competition
While the funding will help them increase their customer base, it is not an industry where they are alone.
Just Eat, who were recently valued at nearly £1.5bn when they listed, are just one of a number of companies in the sector.
What differentiates Deliveroo is the fact that they give restaurants who don’t otherwise do takeaways the power to deliver.
Consequently, they believe they provide a higher quality of food then traditional delivery services.
Co-founder Shu explains:
In New York, where I previously lived and worked, I was able to enjoy food from all my favourite restaurants at home.
In the UK, the option just wasn’t available – and it became my mission to change that.