DoorDash Close To Securing Funding At $15B Pre-Money Valuation: WSJ

Food delivery company DoorDash is nearing a deal to get new funding led by existing investor T. Rowe Price Group Inc. TROW, the Wall Street Journal reported Thursday.

What Happened

T. Rowe, along with Fidelity Investments and others, will purchase millions of dollars worth of DoorDash shares, at a pre-money enterprise value of $15 billion, according to the Journal.

SoftBank Group Corp.'s SFTBY Vision Fund, which is an existing investor, is also considering participating in the funding, the Journal noted.

Why It Matters

Food delivery business in the United States, including that of Uber Technologies Inc. UBER, Grubhub Inc. GRUB, Postmates, and DoorDash, has seen a rise during the COVID-19 pandemic, as lockdowns imposed to curb the spread of the virus forced in-restaurant dining to remain shut.

Amsterdam-based Just Eat Takeaway.com N.V. TKAYF on Thursday announced it is acquiring Grubhub at a valuation of $7.3 billion in an all-stock deal.

DoorDash had filed for an initial public offering with the U.S. Securities and Exchange Commission in February, and according to the Journal, it is still planning to follow through by the end of this year.