On-demand food remains hot: San Francisco’s DoorDash just raised $600 million, and is now worth $12.6 billion, the company said.
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The food delivery service’s Series G included new investors Darsana Capital Partners and Sands Capital. Previous investors also joined in including Coatue Management, Dragoneer, DST Global, Sequoia Capital, Softbank Vision Fund, and Temasek Capital Management.
The company’s quick value appreciation comes on the back of business growth. The firm noted in its own release that it grew 60 percent since its Series F. Or, in simpler terms, that it has “grown” 60 percent since February. What that means isn’t precisely clear, but the firm did note that it “grew 280 percent year-on-year” to an annualized gross merchandise volume (“GMV”) of $7.5 billion. It also expanded to 4,000 cities across the U.S. and Canada.
That means that it recorded a recent month, or quarter of total goods sold through its platform that, when annualized, works out to $7.5 billion. This helps us understand how large DoorDash is; its take is a percentage of that GMV total, for example. If you want bonus points, figure out Uber Eat’s take rate as a percent of its own GMV, and then work backwards into how large DoorDash might be today in net revenue terms.
As our Editor in Chief Alex Wilhelm reminds us, DoorDash’s fundraising past has been sprinkled with large rounds, and rapid valuation growth. In February, the company raised $400 million, and months before that, it raised $250 million.
Here’s a chart of the company’s known funding rounds.
For those who have been tracking the on-demand delivery startup system for a while, let’s do another rewind. GrubHub went public in 2014, Postmates has already filed. Uber, which owns Uber Eats, also recently went public.
In a world of Postmates, Uber Eats, Amazon-backed Deliveroo, and more, this strong infusion of cash into DoorDash, which only works in Canada and the U.S., shows that the private on-demand sector isn’t lukewarm amid a lot of competition. Some reports even said its a market leader.
Illustration: Li-Anne Dias
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