Singapore’s state investment firm, Temasek Holdings, is in talks to lead a $500-million funding round for US-based food-delivery startup DoorDash, according to a report by the Wall Street Journal.
The deal is set to value the San Francisco-based company at over $6 billion, or 4-5 times the valuation from its last funding round in August last year.
DoorDash has another Singaporean investor on its cap table – GIC, the city-state’s sovereign wealth fund. Other investors include SoftBank, CRV, Khosla Ventures, Kleiner Perkins and Sequoia Capital.
Founded in 2013 by Stanford University students, DoorDash hires contractors to pick up and deliver orders from food and beverage outlets in over 1,000 cities across the US and Canada. The company currently captures nearly 18 per cent of market share in the U.S., behind GrubHub and Uber Eats, according to an Edison Trends Report.
DoorDash is also reportedly looking to expand into grocery, alcohol and retail deliveries. Last year, the company signed a partnership with US retail giant Walmart and has been testing autonomous car deliveries via General Motors-owned, Cruise Automation.
DoorDash’s competitors Uber and Postmates are preparing for IPOs this year. Just last week, Postmates announced that it will list in the US at a valuation of $1.85 billion.