DoorDash, the California-based on-demand food delivery startup, has raised $400 million in its new funding round. The announcement was made public on Thursday.
After the capital infusion, the company’s worth is nearly the value of GrubHub, whose market cap is currently hovering around $7.2 billion.
Earlier, the company was valued at $4B and after the new funding round, it is now worth $7.1 billion.
In the new funding round, Temasek Holdings and Dragoneer Investment Group were the new investors, and along with them Door Dash’s existing investors also took part in the funding round. The names of the existing investors are Sequoia Capital, Softbank Vision Fund, and DST Global.
The startup will use the capital to make its team stronger, which includes hiring more senior management and drive the company’s expansion.
Tony Xu (CEO of DoorDash) hasn’t shared anything about the company’s IPO plans, but if the company spend the fundings aggressively, then it may put pressure on the IPO of its competitors like Postmates and Uber. The source is associated with Forbes.
The new $400M capital infusion will drive the DoorDash towards its expansion until it covers every part in the US and "every nook and cranny" in Canada.
Currently, the company will invest the capital for growth. The company want to serve the merchants beyond restaurants earlier, and that’s what the focus is on right now the CEO was quoted as saying by CNBC.