Telecommunications and internet group SoftBank led a $535m series D round for US-based delivery services provider DoorDash yesterday, increasing the company’s overall funding to $722m.
Venture capital firm Sequoia Capital, charitable foundation Wellcome Trust and Singaporean sovereign wealth fund GIC also participated in the round, which valued DoorDash at $1.4bn post-money, a source close to the company told TechCrunch.
The individual amounts provided by each investor were not revealed but reports in December 2017 had stated that SoftBank was considering a $300m investment in DoorDash through its Vision Fund.
DoorDash runs a last-mile delivery service for restaurants that operates across more than 600 cities in the US and Canada. It has local eateries and national chains among its users and intends to eventually extend the service to a range of other consumer industries.
The company will use the funding to further develop the technology it offers to clients, and is looking to expand DoorDash Drive, which allows clients to take orders directly that can be delivered by the company. It intends to be present in 1,600 cities by the end of 2018.
Jeffrey Housenbold, managing partner of SoftBank Investment Advisers, will join DoorDash’s board of directors in conjunction with the round, as will Jeremy Kranz of GIC.
Housenbold said: “DoorDash’s technology advantages, exceptional management team and relentless merchant focus are reflected in their stunning growth and impressive unit economics.
“Food delivery is just the first chapter. Tony and team have a bold vision to create the world’s best logistics company, and we are thrilled to partner with them to help accelerate their progress.”
The round comes after a $127m series C round led by Sequoia in early 2016. The round, which valued DoorDash at $720m, included Wellcome Trust, Khosla Ventures, Kleiner Perkins Caufield & Byers (KPCB) and Y Combinator.
DoorDash’s other investors include Pear Ventures, private investors such as Ted Zagat and CRV, the latter having contributed to its $40m KPCB-led series B round in 2015 alongside Sequoia Capital and Khosla Ventures.