On-demand delivery firm Deliveroo has raised an additional £285m from investors including Fidelity and T Rowe Price.

According to Sky News, the US-based fund management firms agreed to back the London-based firm as part of deal which values the company at $2bn (£1.48bn).

The deal could be announced this week and is set to alight reports that Deliveroo is seeking to IPO, as both investors backed Facebook and Snap before they went public.

Founded in 2012, Deliveroo has so far raised $857m (£635m) across six rounds. The company closed a £2.7m Series A in June 2014, followed by a $25m (£18.5m) Series B, a $70m (£52m) Series C, a $100m (£74m) Series D and a $275m (£203m) Series E in August last year.

Investors in the firm include Bridgepoint, Greenoaks Capital, Index Ventures and Accel Partners.

The news comes after a filing lodged at Companies House by Deliveroo’s holding company showed that sales grew by more than 600% last year, reaching £128.6m. Losses also increased, though, rising from £30.1m in 2015 to almost £130m in 2016.

Deliveroo, which acquired a New York-based company earlier this year, has also made headlines for its handling of worker’s rights in the recent past.

The news comes after fellow gig economy firm Uber received the news that Transport for London would not be renewing its private hire operating license when it expires at the end of September.

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