Delivery Hero, a Berlin-based food delivery platform, raised €1.25B ($1.5B) through a sale of convertible bonds, marking the company’s third-equity linked issuance in less than two years.
According to Bloomberg, Delivery Hero sold €750M worth of bonds due in 2026 and an additional €500M set to mature in 2029. The proceeds will be used to take advantage of investment opportunities and general corporate purposes.
The 2026 notes will pay a coupon of 1 per cent annually while the 2029 tranche will pay 2.125 per cent. Both are being sold with a conversion premium of 40 per cent, reports Bloomberg.
Giles Thorne, an analyst at Jefferies, says, “Today’s raise promises the near term will remain busy,” he said. The company has been “masterful” in using its rising stock price to match competitors’ capitalisation.”
Earlier this year, the German company raised €1.25B by issuing 9.44 million new shares to institutional investors at €132/share.
H1 result for 2021
Last month, the German company published its final half-year results and 2021 interim financial report. According to the report, the company has processed 1.4B orders in H1 2021, corresponding to an 83 per cent YoY increase.
The group’s GMV grew by 78 per cent YoY to €16.2B, while total segment revenue increased 109 per cent YoY to €2.9B.
The adjusted EBITDA/GMV margin has improved from -3.6 per cent in H1 2020 to -2.1 per cent in H1 2021.
The company also updated its guidance, expecting its full-year GMV to reach €33B to €35B with a total segment revenue outlook at €6.4B to €6.7B, and an adjusted EBITDA/GMV margin at around negative 2 per cent.
Delivery Hero’s previous developments
Germany debut – Last month, Delivery Hero made its official debut in Germany under the brand Foodpanda after testing its service for weeks in four Berlin districts – Friedrichshain, Kreuzberg, Mitte, and Prenzlauer Berg.
Delivery Hero had acquired foodpanda in December 2016 to strengthen its position in the online food ordering and delivery market.
In December 2018, Delivery Hero sold its German food delivery businesses Lieferheld, Pizza.de, and foodora to Dutch-rival Takeaway.com for €930M.
Acquires stake in Deliveroo – Last month, Delivery Hero acquired a 5.09 per cent stake in UK-based Deliveroo to take advantage of the sector for post-lockdown growth.
DX Ventures – Earlier this year, the company launched its independently managed early-stage venture capital fund, DX Ventures, to invest in disruptive founder-led companies.
DX Venture says the fund’s approach is centred on building long-term partnerships with founders to provide support throughout the lifecycle and actively create value.
About Delivery Hero
Founded in Berlin in 2011, Delivery Hero has a worldwide network of online food ordering sites operating in 40 countries across Asia, Europe, Latin America, the Middle East, and North Africa.
The company has also set its foot in the e-commerce sector to bring groceries and household goods to customers’ doorsteps in under seven minutes.
Delivery Hero has been listed on the Frankfurt stock exchange since 2017 and became part of the leading index DAX (Deutscher Aktienindex) in 2020.