Food delivery startup DoorDash said to be raising $500m fresh funding

Visual from DoorDash website

Food delivery juggernaut DoorDash Inc. is raising at least $500 million from investors in a funding round that will likely value the company at about $13 billion, people familiar with the matter told Bloomberg.

The final size of the funding round is still being determined, and could easily exceed $500 million, said the people, who requested anonymity because they were not authorized to discuss the matter publicly.

A spokeswoman for DoorDash declined to comment.

Launched in 2013 as an app-based food delivery service, DoorDash competes against the likes of Grubhub Inc. and Uber Technologies Inc.’s UberEats, which allow consumers to order food from their favorite restaurants.

The company told Bloomberg in December it tripled annual sales in 2018 and recorded net revenue of $107 million in November.

Even by today’s standards of giant funding rounds — which pushed venture capital investment in 2018 to highs not seen since the dot-com boom — DoorDash has been unusually active.

It raised $400 million in February at what the company said at the time was a $7.1 billion valuation. That round brought its total funding to about $1.4 billion, from investors including Sequoia Capital, SoftBank Group Corp.’s Vision Fund and Dragoneer Investment Group.

The technology news site the Information earlier reported some details of the most recent fundraising.

Bloomberg