Food-delivery startup Postmates has raised an additional $100 million in Series F funding at a $1.85 billion valuation.
A Large Round of Funding Before an IPO
The latest round of funding comes just four months after Postmates closed a $300 million round of Series E funding which, at the time, valued the company at $1.2 billion. The most recent round – led by Tiger Global Management, BlackRock, and Glynn Capital Management – will perhaps be used to reduce the amount the company will look to raise when it goes public, as it is anticipated in the first half of 2019.
A 2019 IPO in a Crowded Rideshare Market
As reported, Postmates has begun preparations for an anticipated 2019 IPO. With several other large competitors also slotted to go public in the new years, exactly how Wall Street will respond to the food delivery company’s IPO is anyone’s guess. Though Postmates was one of the first to enter the mobile food delivery marketplace, other major players such as Uber Eats and the SoftBank-backed DoorDash have prevented Postmates from ever totally cornering the market.
Carving Out a Niche
Nevertheless, Postmates has carved out a very nice little niche for itself in the mobile food delivery space. As of the end of 2018, the company was reportedly completing 5 million deliveries per month and generated more than $400 million in 2018 annual revenue. Currently, the company operates in more than 550 cities.
One of the First Successful Delivery Apps
Founded in 2011, the company quickly grew to signup drivers and franchises to partner with across the country. Postmates quickly expanded to over 44 U.S. markets, and saw the lion’s share of the on-demand delivery market, until Uber launched Uber Eats in 2014. To date, Postmates has raised more than $678 million after eleven rounds of funding.