SAN FRANCISCO — Delivery service DoorDash said it raised $400 million in Series F financing, giving the company a $7.1 billion valuation. The round was co-led by Temasek and Dragoneer Investment Group with participation from existing investors Softbank Vision Fund, DST Global, Coatue Management, GIC, Sequoia Capital, and Y Combinator.
The investment will allow DoorDash to expand across the country. The company said it had a growth rate of more than 250 percent year-over-year at the time of the company’s last financing in August of 2018, to 325 percent in 2019.
“Last year, the culmination of more than four years of work came to fruition as we expanded our geographic footprint by over five times across the U.S. and Canada, launched and scaled DashPass to become the largest food delivery subscription product in our industry, and expanded beyond restaurants through our DoorDash Drive platform,” said Tony Xu, co-founder and CEO of DoorDash.
Over the last 12 months, the company broadened its coverage to more than 3,300 cities and became the first on-demand platform to operate in all 50 states. DoorDash is now available to 80 percent of Americans and has plans to reach every postal code in America.
In August 2018, the company launched its DashPass subscription service and in just six months it has become the fastest growing subscription service in the industry, adding more than 30,000 customers each week. DoorDash users can order with no delivery fee from marquee national restaurants, including Wendy’s, Chipotle, Buffalo Wild Wings and Burger King as well as local favorites such as Portillo’s in Chicago, Torchy’s Tacos in Texas and Mendocino Farms in Los Angeles.