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  • 📈 Doordash Offers £2.7bn for Deliveroo

📈 Doordash Offers £2.7bn for Deliveroo

April 28, 2025

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Doordash Offers £2.7bn for Deliveroo

  • Volution’s £100m Boost for UK Scaleups

  • £1.75bn Deal Keeps Post Office Open

The summary: Deliveroo might be swapping its Union Jack for stars and stripes as Doordash circles with a tempting offer, giving investors a juicy potential payday and a fresh twist in the fast-moving food delivery race.

The details:

  • Deliveroo’s £100m share buyback is on ice, after US rival Doordash came knocking with a 180p-a-share offer — a 20% premium that had Deliveroo’s shares sprinting up like a Deliveroo cyclist on double pay.

  • Despite the offer causing a Monday morning market flutter, Deliveroo’s potential £2.7bn price tag is a far cry from its 2021 IPO dreams of £7.6bn — a reminder that not every unicorn keeps its horn.

  • Deliveroo is flirting with Doordash, saying it’s "minded to recommend" the bid but warning shareholders to sit tight for now — no promises, no panics.

  • With sector mergers heating up faster than a pepperoni pizza, Doordash has until 23 May to seal the deal, or risk Deliveroo riding off into someone else’s sunset.

Why it matters: Deliveroo, once the golden child of British tech, is now weighing a cut-price exit as the food delivery land grab turns into a messy merger free-for-all. A US giant sniffing around suggests Deliveroo’s solo future looks about as certain as a late-night kebab order. If the deal goes through, it could mark another British name quietly slipping into foreign hands — all while investors hope for a payout to soften the blow.

The summary: Volution’s new £100m fund is giving UK tech startups the cash, clout, and global mates they need to leap from plucky underdogs to world-beaters — all while giving a polite nod to saving the planet.

The details:

  • Mind the Funding Gap: UK startups are breezing through Series A, only to find a yawning chasm before Series B — with funding down 44% and conversion rates halving over five years. Volution’s new £80m-ish ($100m) fund aims to be the sturdy bridge over this financial abyss.

  • Brit-Jap Power Play: Volution’s tied the knot with Japan’s SBI Investment, wooing serious yen from pension pots and unlocking a direct line to Japan’s corporate titans — courtesy of the Hiroshima Accord and a bit of good old-fashioned diplomacy.

  • Scaling Up, Not Selling Out: Volution isn’t backing pretty pitch decks and wishful thinking. It’s fueling real businesses already raking in £5m+ a year, helping them dodge the zombie startup apocalypse and sprint toward scale with a green conscience.

  • Past Glory, Future Gold: With a unicorn under their belt and a sparkling 300% portfolio growth rate, Volution’s backers are piling in for round two, betting on AI, ESG, and blockchain to give Britain’s tech sector the jolt it desperately needs.

Why it matters: UK tech startups are brilliant at getting off the ground but tend to nosedive when they need real money to scale — Volution’s new fund throws them a proper lifeline before they turn into "could-have-beens." By roping in Japan’s pension giants, they’re unlocking serious cash and global connections just when productivity’s flatter than a pancake. In short: fewer zombies, more unicorns, and a cheeky nod to saving the planet while we’re at it.

The summary: The Post Office’s £1.75bn deal with 30 banks means you can still rely on your local branch for cash while the government gets a handy cash injection, all while the Post Office rebuilds from its past woes – a proper win-win!

The details:

  • Post Office strikes £1.75bn jackpot with 30 banks, ensuring Brits can keep popping into their local branch for cash withdrawals, deposits, and a good old moan about modern banking.

  • A tidy £500m boost is heading into Post Office coffers, with an annual payday rising from £250m to £350m – proof that loyalty to actual branches isn't quite dead yet.

  • In exchange for the extra dosh, the Post Office promises to polish up its service for bank customers — presumably more smiles, fewer queues, and maybe even a working pen on the counter.

  • At a time when bank branches are vanishing faster than a pub at last orders, the Post Office is clinging to relevance — and desperately needs this win to heal wounds left by the Horizon IT scandal debacle.

Why it matters: The Post Office’s new £1.75bn deal with banks means you’ll still be able to pop in for a cash withdrawal without trekking across town to find a bank branch that hasn’t been boarded up. As banks cut back, the Post Office’s expansion is a lifeline for those who still prefer the tactile joy of cash and human interaction. For the government, it’s a neat little earner, while the Post Office tries to rebuild its reputation after the Horizon debacle – it’s all a bit like a phoenix rising from the ashes, only with more stamps.