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DoorDash Inc, America’s growing on-demand prepaid food service, has secured $400 million from two new investors bringing the company’s valuation to $16 billion.
Companies around the world particularly the United States of America are defying the economic brunts of the coronavirus to aim at new business booms. The Federal government is also aiding the rebound of businesses with favorable economic policies and interventions. The desire to attain new heights has stirred America’s fast-growing on-demand prepared food service company DoorDash Inc currently valued at $16 billion in pre-IPO funding round. DoorDash debuted in 2013 in Palo Alto and is one of several technology companies that use logistics services to offer food delivery from restaurants on-demand.
DoorDash and Its Pre-IPO Funding Round
Doordash since its inception has expanded to about 4,000 cities operating from more than 340,000 stores across the United States and Canada. The company is the brainchild of four Stanford students Tony Xu, Stanley Tang, Andy Fang, and Evan Moore, and believes going public which would give it access to more funds will help the company serve more people.
The company on Tuesday secured $400 million dollars led by Durable Capital Partner LP and Fidelity Management and Research Co. The announcement read:
“Today, we are announcing that we are raising approximately $400 million in a Series H financing led by new investors Durable Capital Partners LP and Fidelity Management & Research Co., and existing investors, funds and accounts advised by T. Rowe Price Associates, Inc.”
Reacting to the decision by Durable Capital Partners LP, Henry Ellenbogen said:
“DoorDash has pioneered a unique logistics platform that facilitates the delivery of food, groceries, and household essentials and has become ingrained in the lives of local communities as an essential service. We are excited to invest in this excellent team.”
“More important than ever, DoorDash is innovating on products and services that power local commerce and enhance their larger community including Dashers, customers, and merchants. We believe in this company and the team,” added he.
The investment from these two new partners brings the total aggregation of DoorDash valuation to about $16 billion.
Promise for Better Services
DoorDash understands the dynamic change the food retail sector is experiencing and will utilize these funds to strengthen its supply chain network. The company also has a commitment to help ailing restaurants and businesses to heal when it launched its Main Street Strong program in May.
As part of this program, DoorDash introduced new products like DoorDash Storefront, which enables restaurants to create their own online stores at the click of a button and seamlessly fulfill orders placed online. This drive for better service delivery is what redefines and distinguishes existing businesses while helping emerging ones gain a good market share.
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