DoorDash, a last mile logistics platform, has raised $250 million in a growth round co-led by investment management firms Coatue Management and DST Global. The round comes just five months after the company raised $535 million in Series D funding led by SoftBank Group, boosting the company’s valuation from $1.4 billion to approximately $4 billion. DoorDash has raised $978 million to date.
The company has generated significant growth in a short period, seeing sales grow 250% year-over-year, according to a blog post. While the company has now extended its delivery services to more than 100 major restaurant chains, including Wendy’s, Chipotle and IHOP, its biggest coup has been its recent partnership with Walmart that has expanded to 300 stores in 20 states. As Walmart continues to push into online grocery delivery, it will rely more on third parties such as DoorDash and Postmates to achieve its goal to extend these services to 40% of U.S. households by the end of 2018.
With the Walmart partnership beginning in April — a month after DoorDash received its Series D funding round — the latest funding round likely correlates with the company’s continued expansion via the retail giant. But DoorDash appears to have no issue extending to new markets on its own. Since January 2018, the company’s geographic footprint has nearly doubled, to more than 1,000 cities across the U.S. and Canada. The company is on pace to reach 2,000 cities by the end of 2018.
DoorDash also just launched two services this month. The DashPass subscription service enables shoppers to pay $9.99 per month to get unlimited free deliveries from partner restaurants on orders of $15 or more, while the DoorDash Pickup feature enables customers to order ahead at partner restaurants and skip the lines.
The funds will help DoorDash expand to new cities and develop new products, CEO Tony Xu said in an interview with The Wall Street Journal. DoorDash makes money through an approximately 20% commission fee to restaurants, as well as delivery and service fees.