Tuesday, December 6, 2022

DoorDash seeks even higher valuation

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Sensational. The IPO love continues.

Food delivery giant DoorDash now plans to increase up to approximately $ 3.1 billion of its next IPO, an increase from the $ 2.8 billion it was previously seeking. On Friday, the San Francisco-based company announced that it plans to sell around 33 million shares at a price somewhere. between $ 90 and $ 95, dropping from the $ 75 to $ 85 range he was initially looking for.

Valued at $ 16 billion in its latest round of private funding, the company could be hit with a price tag of $ 30.2 billion based on the top of the new lineup, or up to $ 35.7 billion. dollars on a fully diluted basis.

At this high-end, SoftBank Vision Fund’s stake would be worth nearly $ 6 billion, while Sequoia Capital’s stake would be worth around $ 4.9 billion.

Demand for DoorDash’s services has climbed amid the pandemic, the company managing to maintain its lead as the leading meal delivery company in the United States in terms of sales and even increase its own market share. The Wall Street Journal has a beautiful story Explain why DoorDash has been able to dominate when so many other companies are fighting to send us food to you and me: In short, it has secured a lot of funding and has focused on the areas that its competitors had avoided. And while other companies backed by SoftBank have irresponsibly burned their capital, DoorDash has been able to exploit the Japanese company’s millions of dollars and outsmart its competition.

But DoorDash, even today, still wonders if the food delivery market can actually deliver the high profits investors are looking for – and how much of the pandemic it can sustain.

IN CASE YOU MISS IT: Over the past few months, there have been a lot of founder flares and controversies – all standard in the business world. But what was peculiar about many of the leaders at the center of these explosions: many, many were women. My colleague Maria Aspan dug in the difficult problem in a recent magazine piece and offers a nuanced look. Read it here.

Lucinda Shen
Twitter: @shenlucinda
E-mail: lucinda.shen@fortune.com


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