DoorDash Is Now Worth $12.6 Billion After New $600 Million Investment

The investor feeding frenzy around food-delivery startups hasn’t stopped. Just three months after raising $400 million, DoorDash confirmed it has closed another $600 million with New York City hedge fund Darsana Capital Partners leading the round. That’s an extra billion in its war chest so far this year, and half of the total of $2 billion raised for the San Francisco startup since its founding in 2013. The new funding round increases DoorDash’s post-money valuation from $7 billion to $12.6 billion, according to cofounder and CEO Tony Xu.

…DoorDash now has an extra $600 million in firepower to continue gaining market share in the U.S. and Canada, the only two markets in which it operates. Xu won’t disclose revenues (and his company still isn’t profitable), but he says the company’s gross bookings run rate in March was on pace for $7.5 billion, which indicates gross bookings in March were around $625 million.

…Xu says the money won’t be going into fueling a price war with its rivals. He’d rather focus on market expansion and what he calls DoorDash’s next billion-dollar business, DoorDash Drive, which delivers for businesses like Walmart.

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