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Illustration: Aïda Amer/Axios

DoorDash has raised $400 million in new equity funding at a $16 billion post-money valuation, Axios has learned.

Why it matters: For all the talk of deals that didn't happen because of coronavirus, this one is a product of the pandemic.

  • Durable Capital Partners led, and was joined by Fidelity and return backer T. Rowe Price.

Flashback: On Feb. 27, DoorDash secured $340 million in debt funding and filed confidential IPO paperwork. There were no plans to raise additional private equity.

  • Overall, DoorDash had raised around $2 billion from VCs (not including the debt). Its final infusion seemed to be last November, when it snared $700 million at a $13 billion post-money valuation.

Fast forward: The pandemic changed the meal delivery giant's plans. For starters, delivery volume soared due to the lockdowns. DoorDash also had new expenses, such as personal protective equipment for drivers and what it says was around $120 million worth of comped services to help beleaguered restaurant partners.

  • There also were concerns about market volatility, although most IPO issuers have sailed through smoothly. Plus the prospect of strengthened competition via an Uber/Grubhub merger that ultimately became a Just Eat/Grubhub merger.
  • The Wall Street Journal previewed this deal last week, noting that the company expects operations to break even for the quarter ending June 30 (excluding one-time expenses).
  • DoorDash declined to make an executive available for comment, likely because of the still-active IPO registration.

The bottom line: Gig economy companies are under all sorts of PR pressures right now, including from politicians and partners, but none of it seems to be fazing investors.

Go deeper

Dan Primack, author of Pro Rata
Sep 23, 2020 - Economy & Business

What the 2020 SPAC boom means for 2021

Illustration: Annelise Capossela/Axios

The blank-check boom of 2020 is sapping the 2021 IPO market of prospective issuers.

Driving the news: SPAC godfather Alec Gores this morning announced the market's largest-ever deal, with Gores Holdings IV (Nasdaq: GHIV) agreeing to buy wholesale mortgage lender UWM at an enterprise value of approximately $16.1 billon.

Hope King, author of Closer
Updated 2 hours ago - Economy & Business

Peloton pumps its brakes

Data: FactSet; Chart: Axios Visuals

Peloton’s popularity is falling as swiftly as it shot up.

Why it matters: Not all pandemic habits stick around. Peloton's trajectory over the past two years exemplifies how challenging it's been for companies to gauge shifts in consumer demand — particularly in sectors heavily altered by the pandemic.

Mitch McConnell's remarks on Black voters raise ire

Senate Minority Leader Mitch McConnell during a Capitol Hill news conference earlier this year. Photo: Anna Moneymaker/Getty Images

Senate Minority Leader Mitch McConnell (R-Ky.) has been widely criticized for comments he made this week about Black American voters.

Driving the news: When asked by a reporter Wednesday about concerns among voters of color, McConnell said "the concern is misplaced, because if you look at the statistics, Black American voters are voting in just as high a percentage as Americans."