Investments

DoorDash Looks To Raise $500M+ To Reach $13B Valuation

DoorDash app

In a reported funding round that could value the food delivery firm at roughly $13 billion, DoorDash Inc. may be raising at least $500 million. The size of such a round could go over that amount, but the funding round’s size is still being worked out per unnamed sources, Bloomberg reported.

A DoorDash spokesperson did not offer a comment to the news outlet. DoorDash, which rolled out in 2013 as a food delivery service that is app-based, competes against rivals such as Uber Eats and Grubhub.

And the company reportedly told the outlet late in 2018 that its annual sales had tripled that year and that it took in net revenue in November of $107 million. At the same time, the outlet reported that the company has been “unusually active” even in the days of today’s large funding rounds. (Last year, venture capital investments attained highs that hadn’t been observed as of the boom for dot-coms.)

The news comes after it was reported that DoorDash notched a $400 million investment at a valuation of $7.1 billion in a funding round led by Temasek Holdings and Dragoneer Investment Group per news in February. Existing investors in the food delivery firm — Sequoia Capital, SoftBank Vision Fund and DST Global — also participated, according to reports at the time.

While the news comes amid “impending” initial public offerings (IPOs) by Postmates and Uber (which went public), the investment was reportedly not influenced by them. DoorDash CEO Tony Xu told CNBC that it was due to the fact that “the plans were to double down each of the areas in terms of how we got here. And betting on what’s been working.”

The firm was reportedly aiming to put the funds toward more restaurants and growing its reach geographically, among other goals. It also reportedly plans to put funds toward an offering called DoorDash Drive that enables eateries to use the platform’s couriers.

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