DoorDash raises $250 mln in latest funding round at $4 bln valuation

Reuters
Tony Xu, CEO and Co-founder of DoorDash, speaks at the TechCrunch Disrupt event in Brooklyn borough of New York, U.S., May 11, 2016. REUTERS/Brendan McDermid

Aug 16 (Reuters) - Meal delivery service DoorDash Inc raised $250 million in a new round of funding co-led by Coatue Management and DST Global, valuing the company at $4 billion.

DoorDash, whose investors include Japanese holding conglomerate SoftBank, Sequoia Capital and Charles River Ventures, was founded in 2013 by Stanford students Andy Fang, Stanley Tang, Tony Xu and Evan Moore.

The San Francisco-based company operates alongside GrubHub Inc, Delivery.com, Postmates, Uber Eats and several startups in a highly competitive food delivery retail space that attempts to lure customers with discounts and other promotions.

DoorDash has partnered with several restaurants such as Wendy's, Jack In The Box and Buffalo Wild Wings, while also expanding into the online grocery delivery with Walmart.

The company, whose delivery drivers are called "dashers", has presence in the United States and Canada. DoorDash on Thursday said it was on pace to reach 2,000 cities this year. (Reporting by Karina Dsouza in Bengaluru; Editing by Maju Samuel)