A Deliveroo courier rides alongside Regent Avenue delivering takeaway meals in central London throughout Covid-19 Tier 4 restrictions.
Pietro Recchia | SOPA Pictures | LightRocket by way of Getty Pictures
LONDON — British meals supply start-up Deliveroo introduced Thursday that it plans to checklist in London, in a post-Brexit enhance for the Metropolis.
The agency, which is backed by Amazon, is anticipated to go public later this yr. It went from near failure in 2020 amid a contest assessment into Amazon’s minority funding, to working profitability towards the tip of the yr because of the coronavirus lockdown-driven surge in demand for on-line takeout providers. Amazon’s stake in Deliveroo was greenlit by the regulator final summer season.
Deliveroo mentioned it will undertake a dual-class share construction for its market debut, giving its founder and CEO Will Shu enhanced voting rights and due to this fact extra management over the route of the corporate. It comes after a government-backed assessment called for reforms to London’s listing regime, together with the power to checklist dual-class shares which have been pioneered by Google and Facebook.
In Deliveroo’s case, the dual-class construction will probably be restricted to a few years adopted by a shift to a conventional single-class share construction, according to the current suggestions.
“Deliveroo was born in London,” Shu mentioned in a press release Thursday. “That is the place I based the corporate and delivered our first order. London is a superb place to dwell, work, do enterprise and eat. That is why I am so proud and excited a few potential itemizing right here.”
The information is a boon to London’s inventory market, which is trying to entice extra high-growth tech corporations to compete with New York and the European Union, following Britain’s withdrawal from the bloc. Amsterdam final month overtook London as the biggest share trading capital in Europe.
“The U.Okay. is among the finest locations on this planet to begin, develop and checklist a enterprise — and we’re decided to construct on this popularity now we have left the EU,” mentioned British Finance Minister Rishi Sunak. “That is why we’re reforms to encourage much more excessive development, dynamic companies to checklist within the U.Okay.”
“Deliveroo has created hundreds of jobs and is a real British tech success story,” Sunak added. “It’s nice information that the following stage of their development will probably be on the general public markets within the U.Okay.”
Deliveroo hasn’t but disclosed pricing info for its preliminary public providing. It lately raised $180 million in recent funding at a $7 billion valuation. Alongside Amazon, Deliveroo can also be backed by Sturdy Capital Companions, Constancy, T. Rowe Value, Common Catalyst, Index Ventures and Accel.
“This is a crucial enhance for U.Okay. tech,” mentioned Stephen Kelly, the chair of lobbying group Tech Nation. “With seven new unicorns created in 2020 alone, the U.Okay. now has a complete of 80 scaleups valued at greater than £1 billion.
“That’s greater than twice as many unicorns as Germany and France,” Kelly added. “We anticipate to see extra of our home-grown success tales following swimsuit in what’s simply the beginning of a golden age for U.Okay. tech.”
A number of different corporations are rumored to be exploring London listings, together with fintech start-up Smart and cybersecurity firm Darktrace. On Monday, Danish critiques web site Trustpilot introduced it mentioned it was contemplating launching an IPO in London.