With an imminent initial public offering, food-delivery app Postmates has raised another $225 million. This last-minute round of funding was led by GPI Capital, moving Postmate’s total funding to $1 billion and its pre-valuation at $2.4 billion.
When a company raises a significant amount of capital this close to their public offering, it could reflect cash insecurity or the basic desire to raise its valuation. While Postmates has not made it clear the date of its IPO or the reasons for additional financing, Forbes reported that the company made $400 million in revenue without profit.
Postmates, led by co-founder and CEO Bastian Lehmann, privately filed for an initial public offering in February. The underwriters of the offering are JP Morgan Chase & Co. (NYSE: JPM) and Bank of America Corp. (NYSE: BAC). Previous investors of Postmates are Spark Capital, Founders Fund, Uncork Capital, and Slow Ventures.
Founded in 2011 as an urban logistics platform that delivers food, store goods and groceries on demand, Postmates is now available in nearly 3,000 U.S. cities and connects customers to over 250,000 merchants.
According to Bloomberg, Postmates stands behind UberEats and Doordash as the most popular food-delivery app in the U.S. While Doordash remains a private company, Uber filed its IPO in May, only to see its stock price fall 25% four months later. Because UberEats is fast-growing, investors look to see how it may compensate for that loss. Doordash recently bought Scotty Labs, a young autonomous and remote technology start up.
The competition is crowded for the food delivery business— an industry projected to be worth $3 trillion by 2030.