Food delivery startup DoorDash is in talks to raise more financing at a valuation of $1 billion, just eight months after raising a $40 million Series B round.
Sequoia Capital is expected to lead the round, Bloomberg reported Monday, citing sources close to the discussions. The report did not indicate how much money the company is looking to raise.
Tony Xu of DoorDash loads up the meals from Siam Royal.
Sequoia, Kleiner Perkins Caufield & Byers, Khosla Ventures and Charles River Ventures participated in the startup’s Series B round, which valued the company at $600 million, according to CB Insights.
Stanley Tang, Andy Fang and Tony Xu co-founded the Palo Alto-based startup in 2013 to allow small businesses to provide customers with local delivery services. The company has raised $59.7 million to date and faces stiff competition in what CB Insights calls an “overcrowded” market for food delivery.
“One-third of the companies in the food-delivery industry received their first round of funding in just the last year,” according to CB Insights. “Traditional VCs, celebrity chefs, and high-profile angel investors have all invested in these startups focused on making at-home dining as convenient as possible. Successes like Blue Apron ($2 billion valuation), DoorDash ($600 million), Postmates ($400 million) and Munchery ($300 million) have quickly reached big valuations, encouraging even more new competitors.”
DoorDash competitors also include SpoonRocket, Sprig and even Uber, which offers lunch delivery in several major cities. Instacart could also become a major rival for DoorDash. In January, the grocery-delivery startup raised $220 million and it’s estimated that the company is currently valued near $2 billion. At the time, Instacart announced plans to move beyond just grocery delivery and into other goods.
Original Source: http://www.bizjournals.com/sanfrancisco/blog/techflash/2015/11/doordash-funding-valuation-unicorn-food-delivery.html
