The meals supply startup Postmates has raised a $100 million funding simply sooner than it plans to move public, possibly lowering the amount of cash it wishes to boost when it ultimately lists its inventory.
The brand new funding values Postmates at $1.85 billion, inclusive of the brand new money, an individual conversant in the subject instructed Recode, up from a valuation of round $1.2 billion that it secured in the second one part of final yr.
The funding contains participation from a brand new backer, the outstanding public-market investor BlackRock, in addition to Tiger International and different present shareholders, a Postmates spokesperson mentioned. Public-market giants are desperate to put money into Silicon Valley corporations when they’re nonetheless non-public and less expensive, and the institutional backing provides some cachet to the startup when it in the end hits Wall Boulevard.
On this case, BlackRock is coming into the corporate within the nick of time. Postmates has employed JPMorgan to underwrite its IPO, which is predicted within the first part of 2019. Postmates hopes to move public originally 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 non-public markets simply sooner than elevating it at the public markets is sensible for firms that see an IPO as much less of a financing tournament and extra of a possibility for advertising and marketing or for shareholders to promote their inventory. And regardless of when, it’s exhausting to show down cash when introduced at a better valuation.
Postmates has now and then struggled to boost cash sooner than final yr, with competitor DoorDash elevating cash at upper valuations. (The 2 longtime opponents as soon as regarded as a merger.) However in September, Postmates raised $300 million at a $1.2 billion valuation, in a spherical led via Tiger International, some other giant public-market investor.
A Delaware submitting equipped via the High Unicorn Index authorizes the corporate to boost as much as $125 million in new money.
Each Postmates and DoorDash additionally compete towards different giant trade avid gamers like Grubhub and Uber Eats, regardless that all 4 are experiencing expansion as on-line meal ordering continues to achieve recognition. Postmates, which is most well liked 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 line with a report Recode prior to now reported on. However the corporate posted an working lack of $75 million that yr. Postmates’ 2018 monetary efficiency may now not be bought.