OMERS Ventures reinvests in Deliverect in US$150 million Series D funding round

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The Belgian company with Canadian roots now has a valuation of $1.4 billion.

Amid the growth of third-party food delivery apps during the pandemic, Deliverect has raised US$150 million in Series D funding to help restaurants navigate an increasingly complex environment.

OMERS Ventures, which led Deliverect’s 2020 Series B funding round, reinvested in the startup’s all-equity “primary majority” Series D funding, which closed earlier this month. The round was led by Coatue Management LLC and Alkeon Capital Management, and backed by OMERS, DST Global, Redpoint Ventures, Newion and Smartfin. The new capital brings Deliverect’s total funding to $240 million and gives the company a valuation of over $1.4 billion.

Deliverect aims to become “the backbone of digital food”.

OMERS Ventures managing partner Jambu Palaniappan told BetaKit that Deliverect has a “massive macro opportunity” and “really compelling vision.”

Palaniappan, who is based in the UK and sits on the Deliverect board, said OMERS invested in Deliverect for two main reasons: the company sees “a complicated and challenging world of delivery for restaurants” and an opportunity to help these restaurants manage orders on different platforms.

“The structural shift towards e-commerce, online ordering and delivery — these tailwinds existed before the pandemic, they’ve only accelerated and I don’t think they’re going away,” Palaniappan said.

The round follows a period of significant growth for the Belgian company, which has strong ties and a strong presence in Canada. Deliverect processed one and a half million orders a week in 2021 alone, as demand for online ordering platforms skyrocketed during COVID-19.

Founded in 2018 by a group of former Lightspeed executives, Deliverect offers a software platform that automates the flow of online restaurant orders, integrating delivery, table app and takeout requests from services like than Uber Eats and Grubhub in restaurants’ existing POS or delivery applications. .

Armed with new funding, Deliverect plans to build on its recent growth by expanding its product portfolio, as the company seeks to scale to serve ‘hundreds of thousands of establishments’, including not just restaurants. – where he made his debut – but also conveniences and groceries.

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Deliverect co-founder and CEO Zhong Xu told BetaKit that Deliverect aims to become the “backbone of digital food”, adding that the startup wants to build the infrastructure to “power 100,000 restaurants”.

Xu attributed part of the startup’s recent growth to the diversity of its customer base. “I think what has made us grow very quickly is that we’re not just playing in the very large restaurant business segment,” he said. “We help a lot of small and medium restaurants… [and] in addition to the restaurant space, we are also quite strong in fast-paced commerce. »

Palaniappan said he saw “lots” of opportunity for Deliverect in capturing a bigger share of the grocery and consumer packaged goods markets.

Deliverect is part of an OMERS Ventures portfolio that includes fellow Toronto-based restaurant software startup TouchBistro, matching the firm’s focus on food tech companies.

Deliverect’s customers range from small independent restaurants to large global chains like KFC, Chipotle, Taco Bell and Burger King. The startup serves more than 20,000 sites in 30 markets and recently surpassed 100 million total orders processed to date.

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The Belgian startup has “a strong connection to Canada,” where it launched in spring 2020 and has since partnered with Digital Main Street. For one, the company’s founding team includes a group of former Lightspeed executives, like Canadian co-founder and CRO Jerome Laredo.

Deliverect has also invested heavily in the country: today more than a fifth of Deliverect’s total workforce, 85 members of the company’s 380-strong team, is based in Canada.

Many of these workers are based in Toronto, which serves as the startup’s “Americas hub.” Deliverect currently has teams dedicated to product development, marketing, partnerships, sales and customer success support in the city.

Noah Hayes, Deliverect’s managing director for the United States and Canada, told BetaKit that the startup chose to invest in Toronto for several reasons, including the region’s reputation as “an incredible hub for tech talent. “, a strong support ecosystem and the support of OMERS. , adding that the move “also made sense” from a product and partnership perspective.

With its Series D capital, the Belgian startup aims to double its Canadian headcount and increase its global ranks to around 600 by the end of 2022.

Feature image courtesy of Deliverect

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