Deliveroo’s IPO set to value the company at £8.8bn

Online food delivery player Deliveroo has tipped that its upcoming London IPO will value the company at £8.8bn.

The company, which announced its plans to go public a few weeks ago, said it would price its shares at between £3.90 and $4.60, giving it a higher valuation than the £7bn figure that was bandied around recently.

Deliveroo’s listing is expected to be one of the biggest for the City of London this year and a vote of confidence in the London Stock Exchange as a listing venue post-Brexit.

Will Shu, its chief executive, said that Deliveroo has seen a strong start to 2021, compared to 12 months ago. Shu owns a 6.2pc stake in the company that he is expected to sell a portion of in the flotation, according to Sky News.

In January and February this year, its gross transaction volume, which measures the number of orders it receives on the platform, was up 121pc compared to a year prior. In the UK and Ireland markets, that increase was 130pc.

Deliveroo’s fortunes have turned around greatly in the last 12 to 18 months when Amazon’s large investment in the company was in jeopardy while it juggled the soaring demand for online food ordering during lockdown.

The e-commerce giant invested in the company as part of a $575m funding round but the UK’s competition regulator stepped in to probe the deal and assess its fairness.

Deliveroo said that without the significant investment, it was at risk of running out of money and going under.

The Competition and Markets Authority eventually approved the deal last year giving Deliveroo the means to carry on and now pursue an IPO.

As the company opened up its books ahead of the listing, it revealed losses of £233.7m in 2020, a decrease on the losses of 2019, while the volume of transactions it processed in 2020 was £4.1bn, up from £2.5bn.

It raised a further $180m from investors in January.

The post Deliveroo’s IPO set to value the company at £8.8bn appeared first on Silicon Republic.

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Deliveroo IPO: share price range set between $5.40 and $6.38 for a valuation of up to $12 billion

The food delivery company will use the funds it raises to expand into the hot grocery delivery market.
After announcing a planned IPO earlier this month, Deliveroo has now set a price range for its shares when trading finally begins. The U.K.-based food delivery company has set a range of £3.90 to £4.60 per share ($5.40 to $6.38 USD), reports CNBC. Such a range gives the company a valuation of between £7.6 billion and £8.8 billion ($10.5 billion to $12 billion USD).Read Full Story was founded by a college dropout and just became Europe's most valuable startup after raising $450 million at a $15 billion valuation

Summary List PlacementPayments firm is now Europe’s most valuable startup after raising $450 million at a $15 billion valuation. 
It’s one of the largest recent funding rounds in Europe and makes the company the fourth most valuable privately owned fintech worldwide.
Founded by college dropout Guillaume Pousaz in 2012, raised Europe’s biggest ever Series A round of $230 million in May 2019, at a valuation of $2 billion. That was followed by a $150 million Series B in June last year at a $5.5 billion valuation. powers the payments process of major companies like soon-to-be-public food delivery unicorn Deliveroo, fintech giant TransferWise, and Adidas.
“We had an exceptional year last year, particularly towards the end of 2020 with around $1 billion a week of e-commerce volumes,” Checkout’s founder and CEO Pousaz told Insider. “We had no plans to raise but had remained in touch with investors who have a long-term view of the business. This is going to be a generation-defining company.” 
The startup claims to have added more than 500 new enterprise clients in 2020 including Coinbase, Pizza Hut, H&M, Grab, Klarna, Farfetch, and messaging app Telegram. The company’s competitors include Stripe, last valued at $36 billion, and Dutch payment firm Adyen, which went public in 2018.
Checkout’s financial filings for the full-year 2019, parts of which have been examined by Insider, show revenue of $146.4 million, up from $74.8 million in 2018. Adjusted EBITDA was $5.47 million for the year. The firm’s full filings are not yet publicly available, and were due to be filed with the UK’s company register on 31 December. Pousaz said that the accounts were filed on time at the end of December, but could take two weeks to appear.
Its Series C was led by hedge fund giant Tiger Global Management with participation from Greenoaks Capital and existing investors amid a boom in interest in fintech startups from the private equity world. claims to have tripled its payment processing volume during 2020 as e-commerce boomed during the pandemic. 
The global payments market was worth just under $2 trillion in 2019, according to research from McKinsey. Checkout’s staggering valuation is almost triple the price it reached six months ago.
“We’ve never been chasing league tables and have always been very disciplined in our approach,” Pousaz added. “Our product in the hands of some of the most forward-thinking merchants in the world which is a validation in our business. Our investors understand public markets and are investing in the industries of tomorrow.”
Amid a growth in demand for fintech, high valuations are everywhere. Payments rival Stripe could seek a $100 billion valuation in its next round, Bloomberg reported. Similarly, US challenger bank Chime hit a new $14.5 billion valuation last year while buy now, pay later giant Klarna raised $650 million at a near $11 billion valuation in September 2020.
When asked about the hot IPO market and Checkout’s chances of going public, Pousaz said: “It’s certain that we will be a public company, we have public market investors on our cap table but there is no pressure on us. The reality is that our Series A was around 20 months ago so our timing is dependent on our roadmap.”SEE ALSO: Fintech startups like Revolut and Luno are seeing a boom in demand from consumers rushing to invest in cryptocurrencies amid major bitcoin interest
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