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Postmates ‘raises USD 225mn ahead of IPO’
Posted on Friday, 20 September 2019 09:55
Postmates, the US food delivery startup widely expected to publish a prospectus for an initial public offering (IPO) this month after filing confidentially in February, has just raised USD 225.00 million for a valuation of USD 2.40 billion. Forbes first reported the financing, stating GPI Capital led the round that boosts the unicorn’s worth up from USD 1.85 billion in January. While it is not known what stake the investor now holds, the backer will join the board and sit alongside representatives from Founders Fund, Tiger Global and Spark Capital. Separately, Techcrunch noted GPI takes non-controlling equity interests - in late-stage private entities as well as listed ones - that are generally somewhere between 2.0 per cent and 20.0 per cent. Forbes made a point of saying the funding round is a rare move by a technology company as it comes right before the startup is expected to publicly publish its listing prospectus. It highlighted the fact pre-IPO rounds may be an indication that the listing hopeful’s coffers are running on empty or it wants to increase its valuation ahead of a flotation. Postmates could be simply bringing in more money from available sources, after all, it has already tapped the likes of BlackRock, Tiger and Spark, Crunchbase noted. It added the alternative is the startup may need a little extra capital support in order to get its IPO to the market. Separately, a source with knowledge of the matter told Business Insider the funding is not connected with the upcoming first-time share sale, which is widely expected to kick off this month. Reports earlier this year suggested Postmates has tapped in Bank of America and JPMorgan as lead underwriters for the much-anticipated, imminent flotation. Zephyr, the M&A database published by Bureau van Dijk, shows 201 deals targeting the food delivery sector have been announced in 2019 to date. Takeaway.com’s acquisition of Just East for USD 6.11 billion is currently the largest by value, being worth three times the USD 1.82 billion joint venture between Marks and Spencer and Ocado. DoorDash not only announced plans to take over Caviar for USD 410.00 million in the sector’s sixth-biggest deal of the year but it also raised USD 600.00 million in a series G financing round in May. © Zephus Ltd