While others in the online food delivery space stumble, Delivery Hero is helping itself to some fresh financing today: the online take-out ordering service has announced $30 million in additional Series D funding, led by Phenomen Ventures with support from existing investors. The follow-on funding comes almost a year after it closed a $50 million Series D led by Kite Ventures.
The move comes amid some consolidation among other online food delivery giants — specifically GrubHub and Seamless merging in the U.S. Taken together, today’s hefty funding news and the M&A activity are signs of how those left standing in the “take out wars” are in a period of scaling up for better returns on the business model. Across Europe, Asia, Australia and Latin Amercia, Delivery Hero competes with the likes of Just Eat and the Samwar brothers’ backed Food Panda.
Delivery Hero, which is headquartered in Berlin and was founded in October 2010, said it is bringing more international investors on board after confirming it will reach profitability this year.
Delivery Hero currently generates more than $400 million in annual turnover, partnering with local restaurants to deliver millions of monthly orders across the 14 international markets where it operates, namely: Austria, Australia, Denmark, China, Finland, Germany, India, Mexico, Poland, Russia, South Korean, Sweden, Switzerland and the U.K.
It would not comment on its current valuation, in light of the follow-on funding, but a spokesman told TechCrunch that it’s “a significant increase reflecting the great progress since last August” — i.e. when it closed the first tranche of the Series D. He confirmed Delivery Hero’s total funding to-date is $116 million equity, plus $10 million venture debt.
Phenomen Ventures, which has previously invested into the likes of Fab.com, OneTwoTrip and Hailo, is making one of its largest investments to date with Delivery Hero, according to the company. Dmitry Falkovich, founding partner of Phenomen Ventures, said in a statement that he’s been “amazed” by the development of Delivery Hero over the past two years.
As for where the funding will go: Delivery Hero said it will “primarily” invest the follow-on Series D into strengthening its presence in existing markets but also said it plans to “further expand its position: — without specifying whether that means expansion into new markets, or merely ramping up its existing operations.
Additional reporting: Ingrid Lunden