DoorDash seeks an even higher valuation
DoorDash plans to raise as much as $3.1 billion (!!)
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 have soared amid the pandemic, with the company managing to maintain its lead as 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.
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.
IN CASE YOU MISSED IT: In recent months, there’s been many a founder flameout and controversy—all standard in the business world. But what’s been peculiar about many of the executives at the center of these blowups: Many, many have been women. My colleague Maria Aspan dug into the difficult issue in a recent magazine piece and offers a nuanced look. Read it here.
Lucinda Shen
Twitter: @shenlucinda
Email: lucinda.shen@fortune.com