US food delivery service DoorDash has raised $250 million in a growth round co-led by Coatue Management and DST Global.
The announcement comes less than six month after the San Francisco-based firm secured $535 million in series D funding round. It has now achieved 250% year-on-year growth and is valued at $4 billion.
Since January, the company’s geographic footprint has nearly doubled to more than 1,000 cities across the US and Canada and it claims to be on pace to reach 2,000 cities this year. It recently announced partnerships with Chipotle, IHOP, Red Lobster and White Castle, and signed an exclusive deal with The Cheesecake Factory.
DoorDash CEO and co-founder Tony Xu said: “We’re thrilled to partner with premier investors to accelerate our vision to empower local economies by being the last-mile logistics layer.”
The company said it has continued to innovate while growing both its merchant selection and customer base. Building on the momentum of DoorDash Drive – the platform that enables merchants to offer delivery to customers that have placed orders directly with the restaurant – the company announced a national grocery delivery partnership with Walmart that has now expanded to nearly 300 stores in 20 states.
Coatue Management senior managing director Thomas Laffont said: “Over the past few years we’ve watched closely as the last-mile logistics space has exploded with innovation and competition.
“DoorDash’s rapid growth has moved them from an ‘if’ company to a ‘when’ company and we are thrilled to help accelerate their already strong momentum.”
DST Global managing partner Rahul Mehta added: “As strong believers in the space globally, we’re excited to partner with Tony and his exceptional management team in their journey to transform the last-mile logistics industry by delivering great value to the entire ecosystem.
“We’re impressed with their continued growth acceleration, execution, and Tony’s vision and passion for helping local businesses.”
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