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DoorDash seeks an even higher valuation
January 25, 2021

DoorDash seeks an even higher valuation

Wow. The IPO love continues. Food delivery giant DoorDash now plans to raise as much as about $3.1 billion from its upcoming IPO, a boost from the $2.8 billion it was previously seeking. On Friday, the San Francisco-based business said it planned to sell about 33 million shares priced somewhere between $90 to $95, up... Read More

Wow. The IPO love continues. Food delivery giant DoorDash now plans to raise as much as about $3.1 billion from its upcoming IPO, a boost from the $2.8 billion it was previously seeking. On Friday, the San Francisco-based business said it planned to sell about 33 million shares priced somewhere between $90 to $95, up from the $75 to $85 range it initially sought.

Valued at $16 billion in its last private round of funding, the business could be minted with a $30.2 billion price tag based on the high end of the new range or as much as $35.7 billion on a fully diluted basis.

At that high end of the range, SoftBank Vision Fund’s stake would be worth nearly $6 billion, while Sequoia Capital’s holding would be worth about $4.9 billion.

Demand for DoorDash’s services has soared amid the pandemic, with the company managing to maintain its lead as the top meal-delivery company in the U.S. by sales and even grow its own market share. The Wall Street Journal has a good story breaking down why DoorDash has been able to dominate when so many other businesses are fighting to send food to you and me: In short, it got a lot of funding and focused on areas its competitors had eschewed. And while other SoftBank-backed companies burned through their capital irresponsibly, DoorDash was able to harness the millions from the Japanese business and outmaneuver its competitors.

Also Read: Why Snowflake’s stock is raging like a High Sierra blizzard

But DoorDash, even now, still faces questions about whether the food-delivery market actually can provide the high profits investors seek—and how much of the pandemic boost it can maintain.

My Name is Atrox and I am also the main source from The Truth Wire of all the exclusive and most delicate visualization of the activities in the education sector. My first step towards this journey was taken in the very early years of my life. I started with an independent Science and tech consultant. Email [email protected]
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