Deliveroo has announced the completion of a $180m funding round, valuing the food delivery startup at $7bn.

Existing investors, led by Durable Capital Partners and Fidelity Management & Research Company, participated in the Series H funding round.

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Deliveroo said that the funds will be used to expand its Editions delivery-only kitchens, also known as dark kitchens. It will offer its Signature service to restaurants, which enables customers to order via restaurants’ own websites, and new ways to support Deliveroo drivers. It will also expand its grocery delivery service and its Plus subscription service,

Will Shu, founder and CEO of Deliveroo, said:

“At Deliveroo we are always focused on developing the best proposition for consumers, riders and restaurants. This investment will help us to continue to innovate, developing new tech tools to support restaurants, to provide riders with more work and to extend choice for customers, bringing them the food they love from more restaurants than ever before. We are really pleased our shareholders see the opportunity and growth potential ahead of us.”

The London-based startup confirmed for the first time that it has its sites set on a “potential” initial public offering (IPO). Some have predicted that it could float in April 2021.

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After an initial downturn while restaurants in the UK closed their doors during the stages of lockdown in March 2020, Deliveroo is one of the businesses that has benefitted from the growth of the online food delivery sector during the Covid-19 pandemic. On-demand grocery delivery is now its fastest-growing segment. Earlier this month, Deliveroo announced it was expanding to 100 new locations in the UK.

In December 2020 Shu said that the business was receiving double the orders it did in 2019, saying that it had “demonstrated our model is profitable”.

Last year, Amazon’s 16% minority shareholding in the food delivery company was approved by the UK Competitive Markets Authority.

Online flower delivery company Bloom & Wild also announced it had raised $120m in a series D funding round it plans to use to expand into Europe.

Gerard Grech, CEO of Tech Nation said:

“Two fundraising announcements in over just two days continues to demonstrate the credibility and robustness of UK Tech, which last year alone attracted a record $15bn in venture capital funding. We can expect more record highs as we enter a golden age of technology-based entrepreneurship.

“Many of these innovative businesses, like Deliveroo and Bloom & Wild, have been through growth programmes, like ours, specifically designed to provide them with the knowledge networks and management disciplines to help them attract talent, investment and scale. With the support of a tech-friendly regulatory environment and increasing interest from VCs, these companies will lead the way for the UK on the global stage.”

Read More: Grocery delivery is now Deliveroo’s fastest-growing business segment.