DoorDash now valued at $7.1 billion

On-demand food delivery company DoorDash has raised $400 million in new venture capital funding at a $7.1 billion post-money valuation.

Why it matters: DoorDash is in a battle for market share with rivals like GrubHub and Uber Eats, with some in the space believing that cash will be the ultimate kingmaker.

• Singapore sovereign wealth fund Temasek and Dragoneer Invesment Management co-led the round, with return investments from firms like SoftBank Vision Fund, DST Global, Coatue Management, GIC, Sequoia Capital and Y Combinator.

DoorDash CEO Tony Xu tells Axios that the company's top-line delivery value has grown 325% year-over-year and that it is profitable in its "earliest markets." He declined to break down the financials further, save for referencing a comment last year that the company had a $1.25 billion revenue run rate, nor would he identify the profitable markets.

He adds that he isn't paying much attention to the upcoming IPO of rival Postmates, and that proceeds from the new round will be used, in part, to expand its DoorDash Drive last-mile logistics platform and DashPass subscription product. The company also plans to significantly increase its 1,000-person headcount, and eventually expand into non-food products.