Food delivery on demand upstart Deliveroo today announced it is adding another $98 million (£74 million) to its Series F funding round.
The round was led by T. Rowe Price Associates and Fidelity Management & Research Company, who have backed tech giants including Facebook and Tesla.
DST Global, Index Ventures, General Catalyst and Accel Partners upped their stake in the company with follow-on investments in the round while additional funding was provided by private investors.
This brings the total amount raised in the round to $480 million (£365 million).
The funds will be used to further develop its artificial intelligence systems and logistics algorithm as well as further expansion into new markets.
Deliveroo, which specializes in selling and delivering restaurant meals to the household or office, is trying to add in additional services to meet the needs of its restaurant customers.
Thus, part of the new money will go towards an investment in a programme for “delivery-only kitchens”, that help restaurants expand without upfront costs in an effort to increase food selection and improve delivery times.
This investment will bring more people more choice, healthier options and new food. The five year old startup is confident that as their technology improves deliveries will become faster and selections will become more varied.
Deliveroo claims the investment will also “benefit the wider UK economy”.
“Through the expansion Deliveroo is helping to keep great local restaurants in business in high streets across the UK. Deliveroo will provide more well-paid and flexible work for riders and will help to generate substantial extra revenues for its restaurant partners,” the company said in its press release.
This latest investment underscores the momentum of the food delivery business. It comes just a day after the Hungryhouse and JustEat merger becoming official. JustEat is acquiring Hungryhouse from Delivery Hero for £240 million to scale up its business in the UK, which is Deliveroo’s main market currently.
The announcement comes ahead of the launch of its 200th location on Tuesday November 21 when it starts serving customers in Cannes, France, as the latest city in its French footprint.
The Deliveroo platform optimizes food ordering and delivery by integrating web and mobile consumers with restaurant tablet-based point-of-sale order management terminals and logistics optimization algorithm via a delivery driver smartphone software.
The company has 10,000 restaurants in the UK on its books, and 15,000 riders.