Maybe DoorDash should change its name to MoreCash, because the food delivery company announced today that it has raised another $600 million in funding. This brings the total amount raised by DoorDash to $2 billion.
This Series G round brought in new investors Darsana Capital Partners and Sands Capital, which joined existing investors Coatue Management, Dragoneer, DST Global, Sequoia Capital, Softbank Vision Fund, and Temasek Capital Management. With the new money, DoorDash is now valued at $12.6 billion.
In its corporate blog post announcement, DoorDash said its business has grown 60 percent since that Series F round in Feb., and that year over year, the company grew 280 percent, generating $7.5 billion in gross merchandise value sales (not all of that went to DoorDash as it includes the money that also went to restaurants).
All this growth is one of the reasons my colleague, Jenn Marston, pegged DoorDash as the food delivery company to watch, writing:
Part of those rising sales numbers are no doubt due to DoorDash’s aggressive push across the country. The service is the only third-party delivery service right now to be in all 50 U.S. states, in case you couldn’t tell from the endless numbers of promotions and partnerships the company does with everyone from Canter’s Deli in LA to Taco Bell to the Wyndham Hotels chain. The service is also now in 50 Canadian cities.
DoorDash’s big raise also comes at an interesting time, to say the least, in the food delivery market. Uber’s IPO was a dud despite the strong growth of Uber Eats, taking a bit of the shine off gig economy companies. A more direct comparison would be Postmates, which has also filed to go public. The outcome of that IPO could be more consequential for the future of DoorDash.
More money, more problems.