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DoorDash raises $ 535 million, now valued at $ 1.4 billion

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DoorDash Restaurant Delivery Service joins the Unicorn Club with its latest round of financing.

The company announces that she raised $ 535 million in a round D series. And even if it does not say anything about valuation, a source close to DoorDash told us that the new financing valued the company at $ 1.4 billion (post-money).

DoorDash had previously raised about $ 186 million, according to CrunchBase, more recently worth more than $ 700 million.

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Asked if this level of financing means that DoorDash is starting to think of an IPO, CEO Tony Xu said, "It really does not change anything for us." Instead, we say that it adds more flexibility, giving us the optionality in terms of where we want to invest and how we want to think about financing for the company. "

The tour was led by SoftBank Group, with the participation of Sequoia Capital, GIC and Wellcome Trust. Jeffrey Housenbold of SoftBank and Jeremy Kranz of GIC join Alfred Lin and John Doerr of Sequoia on the Sequoia Board of Directors.

"The technological advantages of DoorDash, its outstanding management team, and its seamless focus on merchants are reflected in its staggering growth and impressive unit savings," Housenbold said in his funding announcement. "Food delivery is only the first chapter, Tony and his team have a bold vision to create the best logistics company in the world, and we are excited to work with them to accelerate their progress."

The company claims to work with nearly 90% of the 100 largest restaurant brands in the United States, including Wendy's, IHOP and The Cheesecake Factory.

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Perhaps even more impressive: Xu said the company has become "positive profit margin" over the past year, which means it's profitable on a per order basis. In fact, DoorDash has become profitable in its first markets.

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All of this may seem like an obvious necessity for a delivery business, but it does take into account the fact that on-demand models only work when they are subsidized by venture capital. Xu has said in the past that DoorDash's logistics platform is sophisticated enough to make the business sustainable, and the latest figures seem to prove it.

"It was really the engine of this funding," he said. "We understood that our thesis had been proven, it is now time to take this game of operation and accelerate growth."

These growth plans include the expansion of 600 to 1,600 cities (DoorDash is still focused on the United States and Canada), as well as hiring 250 more people.

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Xu said that DoorDash was going to make big investments in its Drive platform, which allows restaurants to offer DoorDash-powered deliveries via their own websites and apps, so that they can serve "All their customers in all their channels". ]

And, as Xu has long hinted, he also wants to make Drive a platform that serves a wider range of businesses, not just restaurants. He declined to be specific about these plans, except to say that we can "expect to see some of these deliveries this year."