<p><img src="https://static3.businessinsider.com/image/60003d77fe7e140019f7ee09-2400/GettyImages-992889268.jpg" alt="Deliveroo CEO Will Shu" data-mce-source="Aurelien Morissard/IP3/Getty Images" data-mce-caption="Deliveroo CEO Will Shu in France in 2018." border="0"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Amazon-backed British food delivery firm Deliveroo could be headed for a blockbuster IPO in the spring at a valuation of 10 billion ($13.6 billion), according to two industry sources.</p><p>One of the people said the float could take place in April.</p><p>Since Deliveroo is likely to be embarking on discussions with potential investors, which will influence its IPO price, both the target valuation and float date may change.</p><p>Listed rival Just Eat has a market cap approaching 15 billion ($18.2 billion), Delivery Hero's market cap is around 26 billion ($32 billion), while US peer DoorDash closed Wednesday with a market cap of $62.9 billion.</p><p>Deliveroo declined to comment on its IPO.</p><p>Sky News separately <a href="https://news.sky.com/story/deliveroo-picks-banks-to-serve-up-blockbuster-float-12187105">reported on Wednesday</a> that Deliveroo was expected to be valued above 5 billion ($6.8 billion), and that it added Bank of America Merrill Lynch, Citi, Jefferies and Numis to its existing roster of banks, led by JP Morgan and Goldman Sachs.</p><p>Deliveroo is headquartered in the UK and competes with the likes of Uber Eats in Europe and parts of Asia. It offers food, alcohol, and grocery deliveries on demand via an app, relying on a network of gig-economy cyclists and motorcyclists to ferry items to customers.</p><p><img src="https://static2.businessinsider.com/image/60003e44a8de7700187d3cd0-2400/GettyImages-1213462561.jpg" alt="Deliveroo mopeds motorcyclists" data-mce-source="Marc Atkins/Getty Images" data-mce-caption="Deliveroo drivers on mopeds wait outside an Indian Takeaway on March 18, 2020 in Aylesbury, Buckinghamshire." border="0"></p><p>It was founded in 2013 by American Will Shu, formerly an investment banker, and his childhood friend Greg Orlowski. Orlowski left in 2016, and Shu remains CEO of the business.</p><p>The firm is one of the UK's most prominent startups, and a London listing will be a feather in the cap for the British tech sector, which has boasted few high-profile local floats. <a href="https://www.businessinsider.com/europes-tech-unicorns-look-to-repeat-us-ipo-successes-in-2021-2020-12">European tech firms are seeking to share in the successes </a>of US firms that had a record breaking year for IPOs in 2020. </p><p>It would also mark a turnaround for Deliveroo.</p><p>The company <a href="https://www.businessinsider.com/amazon-leads-575-million-investment-in-deliveroo-2019-5">raised $575 million in 2019</a>, led by Amazon, but was denied access to the funding after the UK's competition regulator <a href="https://www.businessinsider.com/amazon-and-deliveroo-cma-halts-investment-2019-7">put the deal on hold</a> on antitrust grounds.</p><p>When the coronavirus pandemic hit the UK in March, Deliveroo warned it might collapse as restaurants shuttered during a nationwide lockdown. It also <a href="https://www.telegraph.co.uk/technology/2020/04/28/deliveroo-let-go-300-staff/">laid off around 300 staff</a> to reduce costs.</p><p>The regulator <a href="https://www.businessinsider.com/cma-clears-amazon-deliveroo-coronavirus">eventually cleared the funding in April 2020</a>, concluding there was no antitrust threat from Amazon's involvement.</p><p>As consumers turned to delivery apps during lockdown, Deliveroo experienced a boom. The company subsequently said it became "operationally profitable" in 2020. Its most recent publicly available financials <a href="https://www.businessinsider.com/amazon-backed-deliveroo-financials-2019-2021-1">showed a hefty loss for 2019</a> as well as expanded revenue and improved margins.</p><p>Deliveroo <a href="https://www.campaignlive.co.uk/article/deliveroo-reviews-global-ad-account-shift-marketing-team/1695101">restructured its marketing operations</a> towards the end of 2020, putting the business under comms chief Thea Rogers, who took up the role of chief communications officer.</p><p>CEO Shu said in November that the company would focus on <a href="https://www.businessinsider.com/deliveroo-editions-pop-up-restaurants-roobox-2017-4">doubling its "Editions" sites globally</a>, otherwise known as dark kitchens. The firm will also focus on building out its monthly subscription offering, Deliveroo Plus, and deepen its focus on grocery delivery. Earlier in the week, Deliveroo said it would launch in 100 new UK towns, boosting its potential reach to 4 million people.</p><p>The company appointed a chairwoman, Claudia Arney, to lead its board in November.</p><p>Deliveroo last publicly known <a href="https://www.businessinsider.com/deliveroo-raises-385-million-from-fidelity-and-t-rowe-price-2017-9">valuation was above $2 billion</a> after a capital injection in 2017. The company entered takeover talks with Uber in 2019 for, sources said at the time, a hoped-for valuation of around $4 billion but it has never publicly confirmed a new figure.</p><p><em>Do you know more about this story' Contact the reporter, Shona Ghosh, on sghosh@insider.com, shonaghosh@protonmail.com, or on Signal at +447412061471.</em></p><p><a href="https://www.businessinsider.com/deliveroo-ipo-could-take-place-in-april-at-10-billion-valuation-2021-1#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/how-symphony-seas-worlds-largest-cruise-ship-deals-with-waste-2020-3">How waste is dealt with on the world's largest cruise ship</a></p>
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