Helsinki, Finland-based food delivery startup Wolt Enterprises Oy today announced that it has raised an additional $530 million from investors, less than a year after closing its previous $100 million funding round. 

Wolt isn’t as well-known as rivals such as publicly traded Deliveroo Inc. but has a substantial presence in the food delivery market. The startup claims more than 10 million users in 23 countries to whom it delivers restaurant orders with the help of more than 50,000 couriers. Wolt says that its revenues tripled in 2020 on a year-over-year basis, to about $330 million.

Another detail that likely caught investors’ attention is that the startup has managed to limit losses despite its rapid top-line growth. Wolt disclosed today that it closed 2020 just $38 million in the red. That’s a comparatively small loss for a startup competing in the highly competitive food delivery market, where much larger players have struggled to achieve profitability.

Besides DoorDash, Wolt competes with Uber Inc.’s Uber Eats unit, GrubHub Inc. and a range of other firms. Several of Wolt’s rivals also saw delivery orders surge in 2020 thanks to demand from consumers opting to do their shopping online during the pandemic. One of the highest-profile examples is Uber, whose Eats unit in August reported higher revenue than its ride-hailing business for the first time. 

Wolt Chief Executive Miki Kuusi said in a statement today that “we operate in an extremely competitive and well-funded industry, and this round allows us to have a long-term mindset when it comes to doubling down on our different markets.”

Wolt’s long-term plans include expanding to other areas besides the restaurant segment, most notably grocery delivery. The startup is both partnering with established grocery store chains and setting up its own “dark stores,” retail locations focused specifically on online orders.

The extra funding should also allow Wolt to expand its engineering operations as rivals invest in new technologies to differentiate their services. DoorDash, for instance, disclosed in the paperwork for its initial public offering last year that it was experimenting with drone delivery. 

A stock market listing is on Wolt’s roadmap as well. The startup reportedly started preparing for an initial public offering after its previous $100 million round last year and is now looking to hire a chief financial officer to oversee the effort.

The round Wolt announced today was led by Iconiq Growth. Iconiq was joined by Tiger Global, Goldman Sachs Growth Equity and more than a half-dozen other institutional investors.

Photo: Wolt