Amazon-backed Deliveroo set for London IPO with Dual-Class Structure

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 Amazon-backed Deliveroo set for London IPO with Dual-Class Structure

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  • Deliveroo, a British food delivery firm, is set to launch its IPO, expected to be London's biggest listing in several years.
  • The plan follows strong business traction during 2020.
  • The company was valued at more than USD 7 billion in its January 2021 funding round.

Amazon-backed British food delivery firm, Deliveroo has unveiled its plans to go public. The IPO could be one of the biggest listings on the London Stock Exchange (LSE) in many years. In a funding round closed early this year, the company was valued at over USD 7 billion.

The company made the decision after experiencing a surge in business during the pandemic period.

Image source: © Stavklem |

The closure of restaurants and lockdown restrictions resulted in strong demand for food takeaway and delivery services. Deliveroo Founder and CEO Will Shu expects the trend to continue post the pandemic period.

Mr Will Shu has highlighted that the business is so much bigger than what he expected in the beginning. The company is building tools for restaurants to make them relevant during the digital age, while also delivering groceries and working on delivery-only kitchens.

Do Watch: The global IPO market amid COVID-19 and how did the Australian IPO market flare during the pandemic?

IPO Details

Reportedly, J.P. Morgan Securities plc and Goldman Sachs International have been roped in as Joint Global Coordinators. Meanwhile, the Joint Bookrunners are Citigroup Global Markets Limited, Merrill Lynch International, Jefferies International Limited, and Numis Securities Limited.

The IPO filing mentions details on the company's dual-class share structure, comprising Class A Shares and Class B Shares. Mr Will Shu, who is the only holder of the Class B Shares, is likely to receive 20 votes per share held, whereas other shareholders will only be entitled to one vote per share. This clearly gives Mr Shu more voting rights and control over the company's directions.

The date for IPO is not announced yet, but it is expected in the next few weeks.

Financial Highlights for 2020

Deliveroo serves millions of consumers in 12 markets, globally. The business model gained strong traction during the lockdown period. The company implemented new technology to make sure restaurants could send food to customers safely during the crisis.

Here are the key financial highlights of the business for the year 2020:

  • Gross Transaction Value, which means the total amount of transaction, stood at GBP 4.1 billion in 2020 as compared to GBP 2.5 billion in the previous year, an increase of 64.3%.
  • Underlying gross profit surged by 89.5%, from GBP 188.7 million to GBP 357.5 million.
  • Underlying adjusted EBITDA was (GBP 9.6 million) and underlying loss stood at GBP 223.7 million.

The company intends to become a market leader in the online food space. It connects restaurants, grocery partners, delivery riders and consumers. The company is currently working with more than 115,000 restaurants, grocery stores and takeaways and giving employment to more than 100,000 riders.

Must Watch: How To launch an IPO?


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