SoftBank’s Vision Fund Looking to Make a Unicorn Out of Britain’s Deliveroo
The startup will reach a valuation of around 1.1 billion pounds, and SoftBank is "very interested" in buying a stake.
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An investment from SoftBank's giant Vision Fund may make the latest unicorn out of UK based Deliveroo, a food delivery startup.
If this investment is anything like the 275 million dollar investment Deliveroo received in August 2016 from investors that included DST Global, Bridgepoint and General Catalyst, then the startup will reach a valuation of around 1.1 billion pounds, and SoftBank is "very interested" in buying a stake, according to reports of UK media outlets.
It would also be the latest investment by SoftBank into Britain after last year's deal to acquire ARM Holdings. Softbank sold 25 percent of its ARM stake to the Vision Fund.
Deliveroo was founded by William Shu, Greg Orlowski and is described as a technology company that focuses on marketing, selling, and delivering restaurant meals to the household or office.
The startup was founded in 2012 and has raised approximately 475 million dollars in five rounds since then from a line of investors like Accel, Greeboaks Capital and Index Ventures in addition to those mentioned earlier on in this report.
Signalling which regions and into what operations they will expand, Deliveroo in May this year, acquired a startup from New York called Maple, another food delivery business but one which matched chefs with the top-flight technology and logistics available.
Despite the glowing news that it might become the latest unicorn, Deliveroo’s good tidings are besmirched by the ongoing legal tussles with labour contracts. Some of Deliveroo’s workers argue that they should be considered employees while the company management argues that its delivery riders are self-employed and contracted.
Deliveroo’s gig economy has been attacked and its contracts accused of being “unintelligible” by politicians in the UK. Deliveroo also drew flak for revising a clause which prohibits couriers from challenging their given self-employed status.
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