(Reuters) - DoorDash said https://blog.doordash.com/doordash-raises-additional-capital-from-new-investors-8e3dc6303322 on Thursday it was looking to raise about $400 million from investors, valuing the food delivery company at about $16 billion ahead of its initial public offering (IPO).
The company, backed by SoftBank Group Corp (T:9984), filed https://in.reuters.com/article/doordash-ipo-idINL3N2AR4TY for an IPO in February, setting it up as one of the most high-profile listings of 2020.
DoorDash, which competes with Uber Eats, GrubHub Inc (N:GRUB) and Postmates Inc, said the latest funding round would be led by new investors Durable Capital Partners LP and Fidelity Management & Research Co and existing investors, funds and accounts advised by T. Rowe Price Associates.
The funding round follows a massive jump in demand for food delivery services as a large number of people ordered in due to COVID-19 mandated lockdowns.
DoorDash said the funds would be used for new products and services.