Delivery unicorn DoorDash is reportedly looking to raise another $500 million in funding at a valuation of over $6 billion, with Singapore’s Temasek Holdings likely to lead the financing, according to the Wall Street Journal.
The expected fundraise comes days after rival Postmates submitted initial paperwork for a planned public offering.
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San Francisco-based on-demand delivery startup DoorDash has raised nearly $972 million since its 2013 inception according to its Crunchbase profile. Most recently, in August 2018, it closed a $250 million Series E led by Hong Kong’s DST Global and Coatue Management. That round nearly tripled its valuation to about $4 billion. Other backers include SoftBank Vision Fund, Sequoia Capital and Khosla Ventures.
According to TechCrunch, DoorDash in January became the first on-demand food-delivery startup to operate in all 50 states.
As our Savannah Dowling reported last August, the food delivery market is tight—DoorDash faces a host of competitors in the space, most notably Postmates and publicly-traded Grubhub. Postmates has raised $678 million, including a $100 million Series F in January at a $1.8 million pre-money valuation. Grubhub, which hit the New York Stock Exchange in 2014, has a market cap of $7.3 billion. Other competitors like Caviar (acquired by Square for $90 million in 2014), and Uber Eats have also made moves in food delivery.
DoorDash isn’t just competing in meal delivery, however. The company announced a partnership with Walmart for its pilot grocery delivery platform in April 2018. In that effort, the company faces competition with Instacart, Good Eggs ,and Amazon.
Illustration: Li-Anne Dias
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