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London Food Delivery Startup @Deliveroo Raises $275M Series E Round

London Food Delivery Startup @Deliveroo Raises $275M Series E Round

Indonesia’s Go-Jek, a leading ride-hailing motorcycle taxi and on-demand mobile app startup with more than 200,000 “ojek” motor-drivers or riders, said it raised over $550 million in growth equity funding led by KKR & Co. (NYSE: KKR), Warburg Pincus, Farallon Capital and Capital Group Private Markets. The company’s Go-Food is the second largest on-demand food delivery service in the world outside of China, working with over 35,000 Go-Food merchants, and over 15 million meals delivered since it was founded in 2010. Deliveroo also faces competition in its markets from Just Eat, GrubHub, Hungryhouse, and Uber’s recently launched UberEATs. Since its $100 million Series D round in November 2015, Deliveroo says it has achieved over 400% growth and reached profitability in a number of markets. It also launched in 29 new cities, added an additional 9,000 new restaurant partners, while continuing to improve its customer retention rates, maintaining a 30 minute average delivery time. The company has also expanded its service to cover breakfast, express lunch, alcohol and corporate ordering, and striking deals with major partners such as PizzaExpress. “After seeing strong growth in the markets we launched in November, our new focus is to drive further innovation in food delivery,” said Shu. In particular, I’m excited about exploring completely new ways to solve the hardest problems restaurants face when offering delivery. RooBox is the first illustration of this approach, and innovations like these are at the heart of our mission.” The new funds will be used to expand the service in both new and existing markets, as well as provide further investment in projects such as RooBox, a pioneering remote kitchen initiative. RooBox gives restaurants access to delivery-only kitchens in key locations, accelerating geographic expansion.]]>

Hungry Alibaba Invests $1.25 Billion in Ele.me Chinese Food Delivery Unicorn

Hungry Alibaba Invests $1.25 Billion in Ele.me Chinese Food Delivery Unicorn

Alibaba acquired a controlling stake in Lazada Group S.A., a leading e-commerce platform in Southeast Asia, for $1 billion. Alibaba is becoming Ele.me’s largest shareholder with an estimated stake of 27.7%, reportedly giving Ele.me a valuation of $4.5 billion. Ele.me, China’s largest food delivery service provider, said in a statement that Alibaba invested $900 million in the deal and Ant Financial invested $300 million. The three companies will have a deeper collaboration, in which ele.me is expected to leverage Alibaba and Ant Financial’s resources, including cloud computing, maps and payment. Ele.me, which has a daily transaction of more than 100 million yuan($15.46 million), will be responsible for the operation of Koubei Waimai, a food delivery site under Ant Financial. Founded in 2008 by Zhang Xuhao, who in 2013 was on Forbes China ’30 Under 30′ list, Ele.me has previously raised over $1 billion in six rounds from 10 investors, including $630 million in a Series F round in August, from CITIC, Tencent (HK: 0700), JD.com (NASDAQ: JD), Dianping and Sequoia Capital, at a $3 billion valuation, which “catapulted it into one of the largest food ordering platforms after U.S.-based Grubhub, German takeout company Delivery Hero and the United Kingdom’s Just East,” according to Forbes. CHINA’S TOP-FUNDED UNICORNS At its previous $3B valuation, Ele.me was already one of the top-funded Chinese unicorns, which according to Business Insider also include the following startups (as of November 3, 2015):

  • Xiaomi (valued at $46B, raised $2.45B)
  • Meituan-Dianping (valued at $20B, raised $2.51B)
  • Didi Kuaidi (valued at $16.5B raised $4B)
  • Lufax (valued at $10B, raised $495M)
  • Zhong An (valued at $8B, raised $934M)
  • DJI Innovations (valued at $8B, raised $100M)
  • VANCL (valued at $3B, raised $522M)
  • Koudai Shopping (valued at $1.45B, raised $362M)
  • Tujia (valued at $1B, raised $400M)
  • Mogujie (valued at $1B, raised $200 M)
CHINA’S O2O ONLINE-TO-OFFLINE TREND Ele.me, which means “Are you hungry now?”, is part of a trend in China for what is known as online-to-offline (O2O) services. These include taxi hailing and restaurant review apps that link smartphone users with offline businesses, said Reuters. Ele.me currently leads China’s online food ordering sector with a 40% market share, according to Beijing-based consultancy Analysis International. Meituan, in which Alibaba has a small stake, has 34%. Baidu, which has 8.7% of the market, ranks a distant third, added Forbes. As more Chinese use their phones for everything from shopping to booking restaurants, China’s internet giants Alibaba, Tencent and Baidu (NASDAQ: BIDU) are increasingly investing in these services to attract more users to their own platforms. Alibaba, the world’s biggest e-commerce company, and social networking and video games titan Tencent together spent more than $8 billion last year alone backing sometimes strikingly similar ventures, such as taxi hailing apps Kuadi Dache and Didi Dache, commented Reuters. Alibaba Group is a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals. Alibaba was founded in 1999 by Yun Ma, chairman, and is based in Hangzhou, China. The company has a market capitalization of $200.65 billion as of April 12, 2016.]]>