DoorDash, the US-based food delivery service that counts telecommunications and internet group SoftBank as an investor, is going public today in a $3.37bn initial public offering.
The company will float on the New York Stock Exchange having priced 33 million class A shares at $102 each, above a $90 to $95 range already upgraded from $75 to $85 last week. The IPO price values it well above $30bn.
Founded in 2013, DoorDash runs an app-based service with a presence in 4,000 cities across the US, Canada and Australia, allowing used to order food for delivery from a network of some 390,000 merchants.
The offering comes after DoorDash slashed its net loss for the first nine months of the year from $533m in 2019 to $149m this year, at the same time more than tripling revenue year on year from $587m to about $1.92bn.
The company had raised a total of $2.5bn as of a $400m round in June this year led by venture capital firm Durable Capital Partners and backed by financial services and investment group Fidelity and investment management firm T. Rowe Price at a $16bn post-money valuation.
DoorDash’s earlier backers include Sequoia Capital, Wellcome Trust, Khosla Ventures, Kleiner Perkins Caufield & Byers, Y Combinator, CRV and Ted Zagat, before SoftBank put up $280m to lead its $535m series D round in March 2018, valuing it at $1.4bn post-money.
Sequoia Capital, Wellcome Trust and Singaporean sovereign wealth fund GIC all took part in the series D round, before Coatue Management and DST Global co-led a $250m series E at a $4bn valuation five months later.
The company added $400m in a February 2019 series F round valuing it at $7.1bn. It was co-led by Temasek and Dragoneer Investment Group and included Softbank’s Vision Fund, DST Global, GIC, Sequoia Capital, Coatue Management and Y Combinator.
Vision Fund, Coatue Management, Dragoneer, DST Global, Sequoia, Temasek, Darsana Capital Partners and Sands Capital Management provided $600m in series G funding for DoorDash in May 2019 before T.Rowe Price added $100m the following month at a $13bn valuation.
DoorDash’s stock consists of 41.8 million class B shares mostly held by executives and about 286 million class A shares owned by its investors.
Vision Fund owned 24.9% of the company’s class A shares pre-IPO and will come out with 22% once it floats. Sequoia Capital holds 18.1% of its class A shares post-IPO while GIC owns 9.3%.
Goldman Sachs and JP Morgan are lead book-running managers for the offering while Barclays, Deutsche Bank Securities, RBC Capital Markets and UBS Investment Bank are book running managers.
Mizuho Securities, JMP Securities, Needham & Company, Oppenheimer, Piper Sandler and William Blair are acting as co-managers for the IPO. DoorDash has not disclosed details of the over-allotment option.
