DoorDash, the US-based food delivery service backed by telecommunications and internet conglomerate SoftBank, has received $400m in funding at a $16bn post-money valuation, Axios reported today.
The round was led by venture capital firm Durable Capital Partners and also featured financial services and investment group Fidelity and investment manager T. Rowe Price. The valuation represented an increase from a post-money valuation of about $13bn for DoorDash’s last round.
Founded in 2013, DoorDash operates an online platform where users can order food to be delivered from local restaurants. It also partners restaurants, including some national chains in North America, to run dedicated delivery services.
The company confidentially filed for an initial public offering in February 2020 having secured $340m in debt financing the same month. The latest funding comes after an increase in business during the Covid-19 lockdown tied to increased expenses such as protective equipment for its delivery workers.
DoorDash’s overall equity funding stands at $2.5bn. Its earlier backers include Pear Ventures, SV Angel, Kleiner Perkins, Khosla Ventures and CRV but its first corporate investment came in a $535m series D round in early 2018 featuring SoftBank, GIC, Sequoia Capital and Wellcome Trust.
The series D funding was raised at a $1.4bn valuation and was followed by $250m in an August 2018 series E round co-led by Coatue Management and DST Global that valued DoorDash at $4bn.
The company’s valuation rose to $7.1bn six months later in a $400m round co-led by Temasek and Dragoneer Investment Group that included SoftBank’s Vision Fund, DST Global, GIC, Sequoia Capital, Coatue Management and Y Combinator.
DoorDash closed its last round at $700m in November 2019 with a $100m investment by T.Rowe Price that added to $600m from Vision Fund, Darsana Capital Partners, Coatue Management, Dragoneer, DST Global, Sequoia, Temasek and Sands Capital Management in May.
