At the end of last month, London-based takeaway and online food delivery app Deliveroo posted its results for 2016 reveling sales growth of 600% to £128.6 million. However, as sales exploded so did costs, and losses soared from £30.1 million to £129.1 million.
The company spent tens of millions recruiting new staff, expanding into new markets and marketing in new markets as it fought off competition in its home market from the likes of Just Eat and UberEats. Overall, during 2016 the company burnt through £114 million leaving it with £157 million in cash at the end of the year. Based on this cash burn rate, the firm will have to raise additional funding within the next few months.
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