Deliveroo’s valuation has shot up to more than $7bn (£5.11bn) ahead of a long-awaited float, following another successful fundraising round over the weekend.

The latest round of private financing for the takeaway home-delivery app highlights investor appetite for tech-led, high-growth companies and puts Deliveroo’s value with backers at more than $7bn ahead of a mooted IPO. 

The business raised $180m in new funding from existing investors on Sunday, pushing the current valuation to more than double what it was in 2019 when tech giant Amazon invested as part of a wider $575m raise. 

Amazon’s investment was only given the green light by the competition watchdog in August last year and the beginning of the coronavirus crisis in the UK pushed Deliveroo to the brink, with many restaurants closing. 

However, during 2020, Deliveroo was able to pivot to providing delivery services for a number of grocers, such as Morrisons, Aldi, Waitrose and the Co-op

Following the latest round of fundraising, Deliveroo chief executive Will Shu said it would help the business “continue to innovate” in grocery delivery and establish its network of Editions dark kitchens. 

“We are really pleased our shareholders see the opportunity and growth potential ahead of us,” he added. 

Deliveroo’s long-awaited stock market debut is expected to come as soon as April. Despite being London-based, there is some speculation the company could look to list on the New York Stock Exchange following Brexit. 

The latest fundraising round also comes after Deliveroo’s key UK competitor and Europe’s largest online food delivery company Just Eat’s chief executive Jitse Groen promised to undercut it on delivery prices.