How many e‑commerce managers out there would like to attract a $30 million investment in their third year of business? Quite a lot, it’s safe to wager, but very few will succeed. But joining the ranks of that elite “very few” is the Berlin-based online food delivery service, Delivery Hero, which has just put $30m into its bank account courtesy of a new funding round led by Phenomen Ventures (existing investors also participated).
It’s enough to make the jobbing e‑commerce manager turn a light shade of envious green, even as they smile in admiration. Especially as the latest cash injection comes less than a year after the startup secured a cool $50 million in Series D funding (Kite Ventures led that round).
Who’ll be left standing in the delivery space?
So what, the curious e‑commerce manager might well ask, does Delivery Hero have that other delivery e‑commerce outfits lack?
For one thing, it’s turning over $400 million every year, having partnered successfully with local restaurants in 14 international markets, including China, the UK, Austria, Australia, Poland, Russia and Germany. And despite only appearing in October 2010, it’s on course to hit profitability later in 2103.
Another point: you don’t need to be a hard-bitten e‑commerce analyst to know that mergers and acquisitions in the “take out” delivery space amount to a war in which those left standing will be capable of better returns on the delivery business model (Seamless and GrubHub, for example, have just merged in the US). In Europe, Delivery Hero is pitted against established brands such as Food Panda and Just Eat.
Onwards and upwards?
A spokesman for the startup has revealed that it’s already made “great progress” since the Series D round and has so far secured total funding amounting to $116 million equity (there’s $10 million in venture debt, too).
Phenomen Ventures has made one of its biggest investments with Delivery Hero. One of its founding partners, Dmitry Falkovich, declared he’d been “amazed” at the startup’s progress over the last couple of years.
Delivery Hero says it will plough the new money into fortifying its presence in existing markets but has also made arch hints at plans to “further expand its position”. Does that mean new markets or strengthening existing ones? Time will tell.