initial public offerings (IPOs) trading on American exchanges

Friday, November 9, 2012

Online food delivery company GrubHub prepares for IPO

(Reuters) - Online food delivery company GrubHub has hired banks for an initial public offering next year, according to three people familiar with the matter.
Chicago-based GrubHub, which competes with larger rival SeamlessWeb to allow consumers to order food via the Internet or mobile phones, has selected Citigroup (C.N) to lead the IPO, two of the people said.

The company is in the process of filling out the rest of its underwriting syndicate, said the people, who requested anonymity because the IPO plans are not public.

Founded in 2004, GrubHub is backed by venture capital investors including Benchmark Capital, DAG Ventures and Lightspeed Venture Partners.

The company's revenue is about half that of SeamlessWeb, which posted roughly $60 million in sales last year, one of the people said. This pegs GrubHub's 2011 revenue at around $30 million.

GrubHub, which has more than 250 employees, has raised more than $84 million in venture funding, including $50 million in September 2011.

Last year, GrubHub acquired New York-based Dotmenu, which ran Campusfood and Allmenus.

GrubHub declined to comment. Citigroup did not immediately respond to requests for comment.

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