Food and grocery delivery company DoorDash has raised $400 million at a nearly $16 billion valuation. Durable Capital Partners and Fidelity Management co-led the round, with T. Rowe Price and existing investors participating.
The pandemic has led to a rapid rise in sales for online food and meal deliveries. DoorDash has proven to be a leader in the US, commanding 45% of the meal delivery market in May, according to consumer analytics provider Second Measure.
The valuation step-up represents a nearly 23% jump from last November, when DoorDash was reportedly valued at $13 billion after raising a $700 million round.
DoorDash filed for an IPO in late February, but the new financing indicates those plans have likely been pushed back.
"The new funding affirms positive investor sentiment and buys the company time for volatile public markets to settle," said Alex Frederick, an emerging tech analyst at PitchBook.
Read more about how delivery technology is reshaping the grocery industry in our recent analyst note.