Food delivery app Deliveroo is reportedly in talks to raise hundreds of millions of pounds from both existing backers and potential new investors. According to Sky News, the deal could trigger a formal takeover offer from rival technology firm Uber.
Sources told the website that Deliveroo is in the preliminary stages of discussions about a new funding round. The company will likely look to raise up to $500 million of new capital at a valuation of up to $4 billion, but sources said the talks could last for “several months”.
In September, media reports suggested that Uber was considering the possibility of submitting an offer to acquire Deliveroo, which currently boasts a valuation of $2 billion.
One person close to Deliveroo founder Will Shu told Sky News that the latest fundraising would create a “valuation floor” in the event of takeover approaches from Uber or other companies.
Founded in 2013 by Shu and fellow co-founder Greg Orlowski, London-based Deliveroo operates in hundreds of cities across the UK, Europe, Asia and Australia.