The Wall Street Journal revealed earlier this month that the firm intended to increase $500 million at a value of $6 billion and above. In reality, DoorDash now reports that the financing was valued at $7.1 billion.
Temasek and Dragoneer Investment Group led the round of discussions with previous investors participating in the SoftBank Vision Fund, DST Global, Coatue Management, GIC, Sequoia Capital and Y Combinator.
DoorDash raised cash at an impressive pace at $535 million in March, followed by a round of $250 million in August (the Company’s estimate is $4 billion).
Co-founder and CEO Tony Xu informed me that the round was “a reflection of the highest results over the previous year.” The business appears to have seen a 325 percent development over the year and points to latest Second Measure information indicating that the service had overtaken Uber Eats in the U.S. market share in internet food–DoorDash is now second in GrubHub.
“I believe the figures talk for themselves,” said Xu. “We are on track to be number one if you just run DoorDash’s math and velocity.”
It attributes the company’s development to three variables: its geographic reach (3,300 towns in the United States and Canada), it’s choice of partners (not just restaurant companies–Walmart uses DoorDash for grocery) and DoorDash Drive.
The financing, he added, will enable the business to continue investing in Drive, its subscription service at DashPass (where you pay $9.99 per months to deliver free of charge from selected restaurants for $15 or more), and in more hires. While DoorDash is now accessible in all 50 States, Xu said that there is still a lot of space to cover extra land in the United States and Canada in particular.
“To me, this round… really does not only shift the stance of the business when we go beyond restaurants to industry management and become the last mile for trade,” he said.
DoorDash is a San Fransisco based food delivery service which was founded back in 2013 a group of students from Stanford University, Tony Xu, Andy Fang, Evan Moore, Stanley Tang. Previously, DoorDash has acquired Square’s food delivery app Caviar for a massive $410 Million.
For Square, this deal provides the company with an opportunity to focus more on its products for businesses and individuals, Square CEO Jack Dorsey said on the massive deal with DoorDash.