US-based online food delivery service DoorDash raised $600m in series G financing from investors including telecommunications and internet group SoftBank’s Vision Fund yesterday at a $12.6bn post-money valuation.
Hedge fund manager Darsana Capital Partners led the round, according to Forbes, and was joined by investment managers Sands Capital and Coatue Management, investment firms Dragoneer and DST Global, venture capital firm Sequoia Capital and the Singaporean state-owned Temasek.
DoorDash runs an online platform that enables users to order food from local restaurants for home delivery. It has ramped up its offering by forming delivery partnerships with several big restaurant chains, and powers online delivery for Chipotle, Denny’s and Wingstop among others.
The company also oversees DashPass, a subscription-based service that enables users to order food without delivery charges on orders above $15 in price. It now has a presence in more than 4,000 urban centres across North America.
The cash will support expansion, including that of the company’s DoorDash Drive service, which allows restaurants to use its drivers to help meet demand for their own deliveries, founder and CEO Tony Xu told Forbes.
“This allows us to pull forward the future sooner,” Xu said. “It is helpful to raise capital, especially when the macroclimate seems to be a bit choppy.”
DoorDash has now raised approximately $1.97bn to date, having secured $400m in a series F round that valued it at $7.1bn just three months ago. Temasek and Dragoneer co-led the round, which included Vision Fund, DST Global, Sequoia, Coatue Management, Y Combinator and GIC.
The company had raised $250m in an August 2018 series E round co-led by Coatue Management and DST Global and backed by existing investors at a $4bn valuation.
SoftBank first invested in DoorDash in March 2018, leading a $535m series D featuring GIC, Sequoia and Wellcome Trust at a $1.4bn valuation. Its earlier investors included Kleiner Perkins Caufield & Byers, Pear Ventures, Khosla Ventures, SV Angel and CRV.
