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Food delivery startup DoorDash announced this afternoon that it has raised $250 million, just five months since the company announced a $535 million round.
Why raise more money so soon? CEO Tony Xu told Axios that he wasn’t actively looking for additional investment, but was open to investor interest because it could help the company expand more quickly. (Maybe he’ll have more to say about those plans at Disrupt SF next month.)
The new funding was led by Coatue Management and DST Global. It sounds like the terms were pretty appealing too, with the valuation growing from $1.4 billion to $4 billion.
In a blog post, the company said it’s had a good 2018, with deliveries increasing 250 percent year-over-year, restaurant chains like Chipotle and IHOP signing up and last week’s launch of the DashPass subscription service, where you can pay $9.99 per month to get unlimited free deliveries.
“As we grow, we will stay true to our values and our mission of connecting people with possibility — and, trust us, we’re just getting started,” DoorDash wrote.
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