DoorDash Inc. is close to securing new funding that would value the largest U.S. meal-delivery company at more than $15 billion before the infusion, as a wave of deal making sweeps over the red-hot industry.
The closely held company plans to sell hundreds of millions of dollars of equity to existing backer T. Rowe Price Group Inc. TROW, 2.17% as well as Fidelity Investments and others, according to people familiar with the matter.
The exact size of the deal and the roster of investors is still being finalized, and the plans could still fall through. SoftBank Group Corp.’s 9984, -2.19% Vision Fund, another existing DoorDash investor, is considering participating, some of the people said.
DoorDash was valued at around $13 billion in 2019, nearly ten times what it fetched a year earlier. Should the San Francisco company manage to seal a deal at an even higher valuation, it would be a sign of the improving outlook for meal-delivery companies in the coronavirus era. DoorDash filed to go public in February, shortly before the coronavirus upended the economy and financial markets, and is still aiming for a listing this year.