Food delivery service provider DoorDash raises $400m in new funding round
California-based food delivery service provider DoorDash raised $400 million in Series F financing led jointly by Singaporean investment company Temasek and Dragoneer Investment Group.
The latest funding round gives a valuation of $7.1 billion to the US food delivery service which is currently available to 80% of Americans with plans to cover every postal code in the country.
Existing investors Softbank Vision Fund, DST Global, GIC, Coatue Management, Sequoia Capital, and Y Combinator also took part in the Series F round.
The proceeds from the financing round is expected to help the last-mile logistics platform to accelerate its momentum further, which has been built by a growth rate from more than 250% over-year at the time of its last financing in August 2018, to 325% in 2019.
The new funding will also help DoorDash reach new consumers and improve the capabilities of its last-mile logistics platform.
For the record, DoorDash raised $250 million during the August 2018 financing round.
Tony Xu – co-founder and CEO of DoorDash said: “Last year, the culmination of more than four years of work came to fruition as we expanded our geographic footprint by over five times across the U.S. and Canada, launched and scaled DashPass to become the largest food delivery subscription product in our industry, and expanded beyond restaurants through our DoorDash Drive platform.”
The US food delivery service provider said that in the last 12 months, it has expanded its coverage to 3,300 plus cities while becoming the first on-demand platform to have operations across all 50 states.
Last August, DoorDash introduced its DashPass subscription service and since then has added over 30,000 customers each week. DoorDash users can order without any delivery fee from national restaurants such as Wendy’s, Buffalo Wild Wings, Chipotle and Burger King and also from local restaurants like Portillo’s in Chicago, Mendocino Farms in Los Angeles, and Torchy’s Tacos in Texas.