The meals supply startup Postmates has raised a $100 million funding simply prior to it plans to head public, most likely decreasing the amount of cash it wishes to boost when it in the end lists its inventory.
The brand new funding values Postmates at $1.85 billion, inclusive of the brand new money, an individual accustomed to the topic advised Recode, up from a valuation of round $1.2 billion that it secured in the second one part of remaining yr.
The funding contains participation from a brand new backer, the distinguished public-market investor BlackRock, in addition to Tiger World and different present shareholders, a Postmates spokesperson mentioned. Public-market giants are desperate to spend money on Silicon Valley corporations when they’re nonetheless personal and less expensive, and the institutional backing offers some cachet to the startup when it in any case hits Wall Side road.
On this case, BlackRock is entering the corporate within the nick of time. Postmates has employed JPMorgan to underwrite its IPO, which is anticipated within the first part of 2019. Postmates hopes to head public initially of a wave of highly-touted tech choices this is more likely to come with Uber, which operates a fast-growing aggressive provider known as Uber Eats.
Elevating cash at the personal markets simply prior to elevating it at the public markets is smart for corporations that see an IPO as much less of a financing match and extra of a chance for advertising and marketing or for shareholders to promote their inventory. And regardless of when, it’s laborious to show down cash when presented at the next valuation.
Postmates has every now and then struggled to boost cash prior to remaining yr, with competitor DoorDash elevating cash at upper valuations. (The 2 longtime competitors as soon as regarded as a merger.) However in September, Postmates raised $300 million at a $1.2 billion valuation, in a spherical led by means of Tiger World, every other giant public-market investor.
A Delaware submitting supplied by means of the High Unicorn Index authorizes the corporate to boost as much as $125 million in new money.
Each Postmates and DoorDash additionally compete in opposition to different giant business gamers like Grubhub and Uber Eats, even though all 4 are experiencing enlargement as on-line meal ordering continues to realize reputation. Postmates, which is hottest in Los Angeles, has been dramatically increasing its supply areas, with its provider now to be had in 550 towns.
In 2017, the corporate’s income grew greater than 85 p.c to round $250 million on just about $900 million in general product sales, in keeping with a file Recode up to now reported on. However the corporate posted an working lack of $75 million that yr. Postmates’ 2018 monetary efficiency may now not be received.