Venture Capital: DoorDash Nabs $400M as COVID Pushes its Valuation to $16B

June 19, 2020 | Latest News, News, Venture Capital
https://dailyalts.com/wp-content/uploads/2020/06/screenshot-blog.doordash.com-2020.06.19-19_55_38.png

DoorDash’s sales have rocketed amidst lockdown restrictions during the COVID-19 crisis.

According to CNBC, which quoted data from Edison Trends, food delivery company DoorDash grabbed 45% of delivery orders after the lockdowns started in the US in mid-March. UberEats at 28%, Grubhub at 17% and Postmates at 7% were the also-rans in the food delivery sweepstakes.

Venture investors obviously liked the numbers, because they just forked over $400 million to DoorDash, valuing it at an impressive $16 billion in a Series H round.

The funding could delay an IPO

The new funding was led by Durable Capital Partners and Fidelity. Existing investors, funds and accounts advised by T. Rowe Price Associates also participated.

When it last raised an amount of $600 million in May 2019 in a Series G round, it was valued at $12.6 billion.

However, the funding raises a question mark over the company’s IPO. In February, DoorDash confidentially submitted a draft S-1 filing, flagging off the process for listing on the public exchanges alongside Uber (NYSE: UBER) and Grubhub (NYSE: GRUB).

Meanwhile, the large sums of capital raised by DoorDash are a testament to the high competition in the food delivery market.

Competitive pressures

The sector is seeing a lot of both of VC investments and M&A deal-making.

Last week Instacart announced that it had raised $225 million in an investment round led by venture capital firms DST Global and General Catalyst, pushing its valuation up to $13.7 billion. It said it “continues to experience an unprecedented surge in customer demand” because of home-bound customers ordering groceries for delivery.

Just Eat Takeaway.com pipped Uber to the post in the race to acquire Grubhub and got a foothold in the U.S.

“Grubhub being acquired by a larger competitor will only embolden the market share battle just at the same time that the regulatory environment around delivery fees across cities is becoming a larger headwind,” wrote Wedbush analysts Dan Ives and Ygal Arounian in a note to clients.

Related Story:  The Uber Vs. Grubhub Food Delivery War – ETFs to Profit

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/07/cryptocurrency-3287396_640.jpg
Digital Assets: Cryptoassets As A National Currency – “Inadvisable Shortcut,” Says IMF
July 28, 2021     Digital Assets, News

In a blog this week the IMF warned against the use of cryptoassets as a national currency, saying it was a “step too far.” Though cryptos had obvious advantages such…

https://dailyalts.com/wp-content/uploads/2021/07/4617521473_66c01e50ee_c.jpg
Alternative Investments/ESG: A Shariah Compliant ETF Tracking China ‘A’ Shares Debuts In Malaysia

Value Partners Group Ltd listed today the VP-DJ Shariah China A-Shares 100 ETF, the world’s first Shariah-compliant A-share exchange traded fund (ETF), on Bursa Malaysia. The ETF provides investors exposure…

https://dailyalts.com/wp-content/uploads/2021/07/Tably-screengrap.jpg
Artificial Intelligence: Tably, An AI-Powered App, Can Tell How Your Cat Is Doing
July 28, 2021     Artificial Intelligence, News

Sylvester.ai, which uses AI to improve animal health outcomes, has created Tably, an open beta app that “a cat parent” can download and better understand their pet’s health and mood….

https://dailyalts.com/wp-content/uploads/2021/07/COMBINED.jpg
FinTech: Alternative Investments Platform Yieldstreet Funded Over $2 Billion
July 27, 2021     Alternative Investments, FinTech, News

Yieldstreet offers retail investors the opportunity to invest in alternative asset classes such as real estate, marine, art, legal finance, and commercial lending. Products are offered across a range of…