US-headquartered food delivery service DoorDash filed today for an initial public offering that would enable telecommunications and internet group SoftBank to exit, five months after increasing its valuation to $16bn.
The company has set a placeholder target of $100m and plans to float on the New York Stock Exchange. It confidentially filed to go public in February this year, raising $340m in debt financing at the same time.
DoorDash runs an app-based service that allows consumers to order food from local restaurants for home delivery. It has some 390,000 eateries in its network and more than 900 million orders have been placed through the platform since it was launched in 2013.
The company more than tripled its revenue year on year to approximately $1.92bn in the first nine months of 2020, while significantly cutting its net loss from $533m to $149m in the same period.
Venture capital firm Durable Capital Partners led a $400m round for DoorDash in June at a $16bn post-money valuation, participating alongside investment and financial services group Fidelity and investment management firm T. Rowe Price and taking its total funding to $2.5bn.
T.Rowe Price invested $100m to close a series G round for the company at $700m in November 2019. SoftBank’s Vision Fund, Darsana Capital Partners, Coatue Management, Dragoneer, DST Global, Sequoia, Temasek and Sands Capital Management had all backed the May first close.
DoorDash had secured $400m in a February 2019 series F round co-led by Temasek and Dragoneer Investment Group and backed by Vision Fund, DST Global, GIC, Sequoia Capital, Coatue Management and Y Combinator at a $7.1bn valuation.
Coatue Management and DST Global had led a $250m round for the company in August 2018 at a $4bn valuation, five months after SoftBank put up $280m to lead its $535m series D, investing with Sequoia Capital, GIC and Wellcome Trust, valuing it at $1.4bn post-money.
Sequoia Capital and Wellcome Trust were among DoorDash’s earlier backers, as were Khosla Ventures, Kleiner Perkins Caufield & Byers, Y Combinator, CRV and Ted Zagat.
DoorDash’s executives own a total of 41.8 million class B shares while its investors own approximately 253 million class A shares. Vision Fund holds 24.9% of those class A shares while Sequoia Capital has 20.4% and GIC 10.5%.
Goldman Sachs, JP Morgan Securities, Barclays Capital, Deutsche Bank Securities, RBC Capital Markets, UBS Securities, Mizuho Securities USA, JMP Securities, Needham & Company, Oppenheimer, Piper Sandler and William Blair are the underwriters for the IPO.
