Up, up and… into Sweden: Delivery Hero raises fresh €25m

Delivery Hero
Delivery Hero

Delivery Hero

Team Europe’s online food delivery network Delivery Hero reportedly raised about €25m in new funding to finance the acquisition of OnlinePizza Norden Group.

The move, announced today, will extend Delivery Hero’s reach into Sweden, Finland, Austria and Poland and strengthen its overall position in Europe. It comes just weeks after the group announced a controlling interest in Lieferheld (Team Europe’s corresponding service in the German market, started up in 2010) and a “pivotal” stake in the UK’s hungryhouse.

Today’s statement described the latest deal as a “double-digit million all-cash” operation financed by an additional funding round and bringing total funds raised to €40m.

As Deutsche Startups pointed out, this suggests the latest round raised about €25m, on top of the €15m previously raised from investors including Team Europe, ru-Net and Kite Ventures (both based in Moscow), e-Tengelmann,  Holtzbrinck Ventures and Point Nine Capital.

Fast food, fast growth

Co-CEO Niklas Östberg and Team Europe set up Delivery Hero Holding in November 2011, following Lieferheld’s promising start in Germany. With the addition of OnlinePizza, the group says it now employs more than 350 people and is active in markets including Germany, UK, Sweden, Finland, Poland, Austria, Switzerland, Russia, Australia, and Mexico.

While the group is growing fast in Europe, it’s not without competition. One of the exiting shareholders in OnlinePizza is Just-Eat, a Denmark-born, London-based group positioning itself as the world’s largest online takeaway delivery provider. The sale of Just-Eat’s 18.5 per cent stake will be used to drive growth in other markets, CEO Klaus Nyengaard said in a statement today.

Last March, Just-Eat raised US$48 million in venture capital to support seven acquisitions in the UK, Italy, Switzerland, Brazil, India and Canada – and announced a joint venture in France, with Alloresto, in January.

A spokesperson from Delivery Hero could not be immediately reached today for comment on future plans.

Image credit: flickr user wendalicious