The company priced an upsized IPO nearly doubling its valuation six months ago. It is part of a the food delivery space which was given a boost by the pandemic.
It floated on the New York Stock Exchange, pricing 33 million class A shares at $102 each, above a $90 to $95 range it had already upgraded from $75 to $85. The IPO price gave it a market capitalisation of well above $30bn.
DoorDash raised a $400m round in June, backed by financial services group Fidelity and investment management firm T Rowe Price at a $16bn post-money valuation. Telecoms conglomerate SoftBank’s Vision Fund had put up $280m to lead a $535m series D round in 2018.
Launched in 2013, DoorDash runs an app-based service in 4,000 cities across the US, Canada and Australia, allowing the user to order food for delivery from a network of 390,000 merchants. The company had reduced its net loss for the first nine months of 2020 from $533m in 2019 to $149m and also more than tripled year-on-year revenues from $587m to about $1.92bn. The business was given a boost by the pandemic.
The food and beverage space has been on the radar of corporate venturers over the past decade. The number of deals has grown six times over from 16 in 2011 to 98 as of December 10. The total estimated capital reached a peak at $10.44bn in 2018 but stood at $3.13bn in 2020.
