UK: Foodhub seeks £100m in biggest-ever funding drive
The food takeaway delivery app is gathering funds to supercharge its global expansion plans
UK takeaway delivery app Foodhub is looking to raise £100 million in private equity funds to turbocharge its growth.
Chief executive Ardian Mula and chief financial officer Mohammed Shakil founded Foodhub in 2017. Today, they claim to have left many competitors trailing in its shadow, outpacing rivals in terms of both size, reach and funding.
Foodhub is based in Stoke-on-Trent with staff in India, Australia, and the US. It reported growth of 160% in 2020, benefitting from the unprecedented swing towards takeaway orders during last year’s lockdown.
The company said the business is fast-approaching the size of industry giants Just Eat and Uber Eats. It is challenging the former on cost per takeaway and beating the latter when it comes to the number of takeaway partners in the UK. Foodhub recently overtook rival Uber Eats to become the UK’s third-biggest online food-ordering portal.
The company claims it is unique in that it does not take a commission from the food establishments for each order placed. This approach enables the company to offer better prices and deals to customers than other online food platforms.
Chief executive Mula said: “The reason we’ve been able to go from tech start-up to a major player in the industry is that we have a unique offering. We’re the only large takeaway app to offer a 0% commission model, meaning that it is cheaper and more manageable to trade through Foodhub than other apps.
“It’s our mission to support independent businesses all around the world, and the more we grow, the more business owners are learning just how Foodhub can help them thrive.”
Foodhub takeaway partners
There are more than 20,000 takeaway and restaurant partners currently featured online on the Foodhub website, and through the apps available for iOS and Android. This number is significantly higher than the 18,000 restaurants working with Uber Eats, for example.
Foodhub also said it has seen dynamic and rapid growth since launch, with the business establishing a turnover of around £30 million in just three years due to accelerated expansion across the globe, and month-on-month order growth that shows no sign of slowing down.
Chief financial officer Chaudry said: “Foodhub is a truly global company, and now that we have footholds in dozens of countries, we’re looking to expand our offering in each territory fast.
“The £100 million of private equity funding will help to bring smaller takeaway aggregators under the Foodhub banner through acquisitions, as well as help us to scale up our operations in each location.”
In 2020, Foodhub began trading in new territories across several continents, including the US, Mexico, Guatemala, Ireland, and New Zealand. It continues to add new international markets to its growing portfolio through high profile acquisitions.
In addition, the multi-million-pound takeover of Eat Appy at the start of this year has seen Foodhub enter the Australian market.
Foodhub said the cash injection will help the company develop global acquisitions as well as consolidating Foodhub’s existing operations in several territories, expanding the workforce across the globe.
