Berlin’s Delivery Hero scores $88m funding round2014-01-13 0
Over the past few months, Berlin-based company builder Team Europe (disclosure: also an investor in VentureVillage) drew a lot of quizzical glances from the German startup scene. Last summer the company builder announced a revised strategy and narrower focus, which manifested in it withdrawing from several of its portfolio companies and raised questions on what Team Europe’s “new focus” would ultimately lead to.
Big news today clears these doubts up – Team Europe’s focus is firmly on portfolio company Delivery Hero, which just announced a whopping $88m (roughly €65m) funding round from renowned late-stage investor Insight Venture Partners. It’s one of the largest investments a German startup has ever received – to provide a bit of comparison, last year NumberFour received $38m (one of the largest Series A financing rounds), while media favourite Researchgate got $35m. Only Rocket Internet, the Samwer brothers’ notorious company builder, regularly collects such large sums.
According to information from online magazine Gründerszene, Insight Ventures now holds between 15 and 20 per cent of Delivery Hero. It’s unclear if existing investors also gave up shares in the latest round. Alongside the capital, Delivery Hero has also won itself an experienced investor – other companies in Insight’s portfolio include Tumblr, Twitter, Flipboard, Hootsuite and Indiegogo. Insight was also an investor in German startup Trivago, which exited to Expedia in December 2012 for almost half a billion dollars.
$200m total funding for Delivery Hero
The latest financing round boosts Delivery Hero’s total funding to around $200m. The Berlin-based company will use the fresh capital to boost its growth in existing markets – it currently has partnerships with 55,000 restaurants in 14 countries including Germany, Great Britain, Sweden, Finland, Russia, China, Mexico and India. Delivery Hero claims it makes roughly half a billion dollars in yearly revenue.
Commenting on the investment, Delivery Hero CEO Niklas Ösberg said: “Delivery Hero has secured a strong global market position. To protect this position, we waited for an investor that shares our vision and passion for product innovation. Insight Venture Partners has already gained extensive experience with companies that are expanding internationally. Our new investor has everything we need to implement our long-term vision.”
Alongside Team Europe and Insight, existing investors in Delivery Hero include Kite Ventures, Point Nine Capital, dept capital firm Kreos Capital and Russian VCs Runet and Phenomen Ventures.
For related posts, check out
- Berlin-based company builder Team Europe cuts back operations
- Hungry for break-even: Delivery Hero raises $30m Series D led by Russian VC Phenomen
- Delivery Hero invests $5m in India’s TastyKhana
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