DoorDash said it is raising roughly $400 million in Series H financing led by new investors Fidelity Management & Research Co. as well as Durable Capital Partners LP in addition to current investors, accounts and funds that T. Rowe Price Associates, Inc. advises. The financing puts the delivery company’s worth at nearly $16 billion, according to an announcement.
The company said the funds will help with new offerings that assist its retailers in handling the evolved operating climate as well as provide diners with secure and accessible ways to transact. It will also “enable Dashers to continue making meaningful, flexible income when they need it most” per the announcement.
Durable Capital Partners LP’s Henry Ellenbogen said in the announcement, “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.”
Ellenbogen continued, “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.”
The news comes as DoorDash rolled out Main Street Strong, which comes with a collection of initiatives, procedures and offerings designed to assisting its eatery partners fuel sales on the path to recovery and handle the new normal. It has introduced products such as DoorDash Storefront that allows dining establishments make eCommerce stores to simply and fulfill digital orders as part of that effort.
On June 12, news surfaced that DoorDash was forecasted to get new funding that would value the firm at $15 billion even prior to the closing of the deal. At the time, it was noted that the California firm intended to sell hundreds of millions in equity to Fidelity Investments and T. Rowe Price Group Inc., among others.
DoorDash had a $13 billion market value just last year, or almost tenfold higher than what it was in 2018.
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