In a funding round led by funds such as BlackRock, on-demand delivery company Postmates has notched $100 million in investments. Glynn Capital and Tiger Global also led the round, along with other funds, to bring the company's valuation to $1.85 billion, Forbes reported.
Postmates CFO Kristin Schaefer said, according to Forbes, “There was great momentum behind the business so we’re super excited to add a little more capital to our war chest.” While the company has raised less funding than its competitors, Schaefer said, it has learned to work with its money in a more effective manner. But with the new funding, the executive said “we are well positioned to outperform in terms of growth.”
California-based rival DoorDash, for instance, notched almost $1 billion in funding last year with SoftBank mega rounds. At the same time, the company faces rivals like Square’s Caviar and Uber Eats, which is owned by Uber. The company is still looking toward an initial public offering (IPO) this year.
The news comes as Postmates said in mid-September that it had taken in $300 million in venture funding. In a press release at the time, Postmates said the funding round came on the back of a banner year of growth, subscription service adoption and market expansion. The round was led by Tiger Global Management and Postmates said Tiger Global’s Scott Shleifer will join the company’s board of directors.
Postmates CEO and Co-Founder Bastian Lehmann said in a press release at the time, “Postmates is proud to be the first and largest on-demand network that is enabling the growth of retail across the country, and today’s investment accelerates our ability to pair technology with the vitality of our neighborhoods.” The on-demand delivery company also had said its gross profit growth has averaged more than 250 percent during the prior four years, as gross margins have dramatically grown by close to 50 percent.