Doordash Is Working On A Deal That Would Value The Company At $15 Billion
DoorDash is on its way to secure funding that would boost the company value to more than $15 billion. To do this, they plan to sell hundreds of millions of dollars’ worth of equity to T. Rowe Price Group, Fidelity Investments, and other backers, according to a report by The Wall Street Journal.
The deal has not yet been confirmed as the final details of the plan are still being finalized. Softbank Group’s Vision Fund is also considering participation in the deal as it reaches more definite stages.
DoorDash was valued at $13 billion last year, which was ten times greater than its valuation a year earlier. They are still aiming for a listing this year after going public in February, before coronavirus shutdowns took place.
DoorDash has had trouble generating a revenue alongside other food delivery services despite increased usage of the companies. With needing to take precautionary measures and ramp up their marketing tactics, it has been difficult for the food delivery industry to generate a profit. DoorDash is still expecting to break even in the quarter ending on June 30.
The difficulties with revenue have also caused some food delivery businesses to merge with others. Grubhub recently confirmed a $7.3 billion deal to merge with Just Eat Takeaway, a European food delivery service.
DoorDash, on the other hand, controlled close to half of the U.S. market in April, according to Edison Trends. They’re ability to generate $2.5 billion in fundraising has allowed the business to offer discounts and enter new markets to give it a boost over Grubhub.
Read the full report here.