US-based food delivery service DoorDash confirmed a $400m series F round yesterday that included Softbank Vision Fund, the $98.6bn fund managed by telecommunications and internet group SoftBank.
Singaporean state-owned investment firm Temasek and investment firm Dragoneer Investment Group co-led the round, which also featured DST Global, GIC, Sequoia Capital, Coatue Management and Y Combinator. It valued the company at $7.1bn, up from $4bn in August 2018.
DoorDash runs a last-mile delivery service that specialises in food from local restaurants, but which has expanded to cover local retail businesses. Users can order through its app, but it focuses on the retail rather than the consumer end, providing business analytics and services in addition to logistics.
The service now covers 3,300 cities across all 50 US states and Canada, and DoorDash’s growth – which it placed at 325% year on year to 2019 – has been accelerated by exclusive partnerships with fast food chains such as Chipotle and Denny’s.
The round follows a series of initiatives launched by DoorDash over the past year, including a subscription service called DashPass which it claims is picking up 30,000 more users each week, and DoorDash Drive, a last-mile delivery service that can be overseen by restaurants and retailers themselves.
DoorDash plans to use the cash to expand its geographic range, introduce new services and enhance its core platform. It has now raised approximately $1.37bn in equity financing since it was founded in 2013.
The company’s earlier funding came from Sequoia Capital, Y Combinator, Wellcome Trust, Khosla Ventures, CRV, Pear Ventures, Kleiner Perkins Caufield & Byers and angel investors such as Ted Zagat, before it secured $535m in an April 2018 round led by SoftBank.
The series D valued DoorDash at $1.8bn and included Sequoia, Wellcome Trust and GIC. It was followed by a $250m series E round in August co-led by Coatue Management and DST Global and backed by unnamed existing investors.
