American on-demand prepared food delivery service DoorDash Inc., has reportedly announced that it has raised USD 400 million through a Series H funding round, post which it has been able to increase its valuation by around $3 billion to nearly $16 billion. Sources cite that the funding round had been led by Durable Capital Partners and Fidelity Management and Research, and legally advised by one of its participants, T. Rowe Price Associates.
Henry Ellenborough, Durable Capital Partners, has stated that DoorDash Inc., is keen to work on innovations in products and services to empower local commerce and intends to expand its larger community including customers, merchants, and Dashers. He has also added that Durable Capital Partners has strong faith in the innovation capabilities of DoorDash Inc., and its team.
For the uninitiated, DoorDash is an on-demand prepared food delivery company headquartered in San Francisco, United States. The company was founded in 2013 by Stanley Tang, Andy Fang, Evan Moore, and Tony Xu. DoorDash is one of the several technology companies that utilizes logistic services to facilitate food delivery from restaurants on demand. DoorDash’s subsidiaries include Scotty Labs and Caviar.
For the record, DoorDash Inc., is one of the companies to be benefitted in the midst of SARS-Cov-2 as consumers have been forced to stay at home and order groceries online. The company has further revealed its plans to direct its proceeds for supporting merchants struggling with their new products amid the changing COVID-19 environment. DoorDash has also come up with new ways for ordering and shopping through DoorDash’s Dashers. The company has launched its DoorDash Storefront to allow restaurants to build their online store and enable customers to seamlessly order food online.
Questions have been raised over the delay in DoorDash’s IPO beyond any change of timing considered by the company due to COVID-19, state sources. The previous year, DoorDash had reportedly raised a $600 million Series-G funding round at a value of $12.6 billion. Since its inception in 2013, the company has apparently raised a total of around $3 billion.