In a new funding round led by Dragoneer Investment Group and Temasek Holdings, DoorDash notched a $400 million investment at a valuation of $7.1 billion. Existing investors in the food delivery firm — SoftBank Vision Fund, Sequoia Capital and DST Global — also participated, CNBC reported.
While the outlet said the news comes amid “impending” initial public offerings (IPOs) by Postmates and Uber, 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 company is looking to put the investment toward more restaurants and expanding its geographical reach, among other goals. It also plans to put funds toward an offering that enables eateries to use the platform’s couriers, called DoorDash Drive. While the service now reaches 3,300 cities in the U.S., Xu is looking to service each U.S. zip code with delivery and expand in Canada.
The news comes after DoorDash announced last August that it had notched $250 million in funding through a growth round, co-led by DST Global and Coatue Management. Earlier that year, the company took in an investment of $535 million from Sequoia Capital, GIC and SoftBank. Last year, it was reported that the company was the fastest-growing, last-mile logistics platform in the U.S., with over 250 percent in year-over-year growth.
At the same time, the company’s geographic reach encompassed over 1,000 cities in the U.S., as well as Canada, and was on schedule to serve 2,000 cities that year. The company had partnered with IHOP, Red Lobster, White Castle and Chipotle (and teamed up with The Cheesecake Factory through an exclusive partnership.) The company had also started a grocery delivery partnership with Walmart.