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
July 1, 2013 Leave a comment
Delivery Hero Tops Up Series D With $30M As Its Global Take-Out Service Heads For Profit
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Relies on rapid growth through acquisitions: Fabian Siegel, co-head of the Berlin delivery service broker Lieferheld
While others in the online food delivery space stumble, Delivery Hero is helping itself to some fresh Series D funding 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.
Delivery Hero, which is headquartered in Berlin and was founded in October 2010 by startup factory Team Europe, 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 said 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. In a canned statement, Dmitry Falkovich, founding partner of Phenomen Ventures, said it’s been “amazed” by the development of Delivery Hero over the past two years.
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.
Delivery Hero competes with the likes of Just Eat, the Samwar brothers’ backed Food Panda, and GrubHub in the U.S.
Delivery Hero : Delivery Hero on access
Thus, the aggressive expansion of Delivery Hero continues. The company is a pioneer in the online brokerage market for food suppliers who earn their money that the connected delivery services pay a commission for each mediated order. Lieferheld went to Germany in October 2010 at the start, as competitors such as Lieferando (since 2009) and Pizza.de had long been active (since 2007). The residue by the late start will Delivery Hero now catching up with acquisitions.
Delivery Hero now accepts online with Norden a group operating profits in the millions generated at 10 million euros. It operates delivery service brokers in Sweden (Onlinepizza.se), Finland (pizza online.fi), Poland (Pizzaportal.pl) and Austria (Mjam.at, Willessen.at). Niklas Östberg, one of the two heads of Delivery Hero, the acquired company knows best.
The 32-year-old Swede, who since April 2011 responsible for the international business of Delivery Hero has built Norden online since 2007 and ran until joining the Board of the Group. Because he was also involved in this, he strokes by selling a low single-digit millions. After joining Östbergs Delivery Hero Holding the portals opened within six months in Australia, Mexico, Switzerland and Russia and bought the end of February the British Hungryhouse platform.
Catching up with prominent investors
Make possible the rapid growth of venture capitalists as Team Europe, the investment arm of Point Nine Capital, the investment company Tengelmann, Holtzbrinck Ventures and Hasso Plattner Ventures. In November 2011, the Russian investors Ru-Net and Kite Ventures came to. Total all donors invested in 18 months almost 50 million euros in Delivery Hero further capital injections are according to the company soon.
The size of the market for delivery services is controversial. Forecasts anticipate only for Germany a span of 680 million euros to 4.4 billion euros. The study, “Typology of Desires” at the Institute for Media and consumer research comes to the conclusion that every other German citizens ordered at least once a year at Bring services. Revenues, let alone profits, no presents in the secretive industry. Judging by the number of connected delivery, about 10,000 restaurants Pizza.de should continue to be held before delivery and Lieferando, both of which have over 5000 restaurants built on platforms with their claims to be the market leader in Germany.
However, the ambitious goals of Delivery Hero go far beyond Germany: With the recent acquisition of online brokers is now represented in ten countries. With four million customers, an order volume of € 250 million is targeted for 2012. Up to ten percent commission per order Delivery Hero play up a so Fabian Siegel, the second boss of the company, thus resulting in a turnover of 20 million to 25 million euros. By the end of this year, so we wanted to zoom back to the present industry leader Just-Eat.com from the UK.
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