International startups like Delivery Hero and FoodPanda have helped lead the three straight quarters of funding growth for the booming food delivery space.

Online and mobile food & grocery startups have taken off worldwide, with total funding to the space increasing in each of the past three quarters. The space saw a five-year quarterly high of $688M in Q3’14 highlighting the momentum the space is seeing. This past quarter’s deals included Germany’s Delivery Hero which raised a $350M Series G and which also recently acquired two other companies in the space (Subdelivery and Pizza.de).

Over the past four quarters, companies in the food delivery space have raised a total of $1.56B across 107 deals. However, despite the increased funding figures, deals have fallen for two straight quarters now. The funding growth, as might be expected, has been driven by a number post-series A companies such as FoodPanda, Postmates, Blue Apron, and the previously-mentioned Delivery Hero which raised large rounds from investors.

food delivery deals and dollars

With multiple startups in the space gaining traction, both average and median deal sizes have skyrocketed in the past two quarters, with Q3’14 seeing a $43M average and $20.5M median figure up 86% and 105% QoQ, respectively. Q3’14 included multiple $20M+ deals including FoodPanda’s $60M Series C, Jiuxian’s $48.8M Series F, and the $350M Series G for Delivery Hero.

food delivery deal size

While larger rounds for post-Series A companies have increased deal sizes, over 2/3 of all deals in the online and mobile food & grocery space have come at the Series A stage or earlier over the past eight quarters as more and more investors pile on into the hot space. However, the drastic increase in Series B+ YoY deal growth furthers the story-line of an industry maturing over the past two quarters. UK-based Just-Eat’s $599M IPO which valued the company at $2.44B in April, as well as GrubHub’s IPO and merger with Seamless could lead to fewer bets on earlier stage companies as more mature players start to take share in what is ultimately a capital intensive business (scaling the sales effort requires significant capital as can be seen). Of course, folks continue to take their shots at Grubhub Seamless.

food delivery by stage q314

International companies have been major beneficiaries of the rise of the online and mobile food & grocery space. While notable companies like Plated, Blue Apron, Postmates, and Instacart have garnered significant funding stateside, international startups have fared far better, with the 5 largest deals in the past two years all going to non-US based companies. This is reflected as “other” areas (which includes some non-major US markets in addition to international markets) and has accounted for ~51% of all deals in the space over the past two years, and has seen a 74% deal growth YoY.

food delivery by geo q314

All visualizations from this post came directly from CB Insights Industry Analytics. For more data around the online and mobile food & grocery space login to CB Insights and run a search for the companies by clicking here. If you don’t have an account, sign up for free below.