#DoorDash valued at $16 billion in pre-IPO funding round

DoorDash said here 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.

The company, backed by SoftBank Group, filed here 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 and Postmates, said the latest funding round would be led by new investors Durable Capital Partners and Fidelity Management & Research 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.