On-demand delivery startup Postmates raised $300 million in venture funding by Tiger Global to accelerate its growth. The deal values Postmates at approximately $1.2 billion. “We didn’t have plans to raise additional capital,” Postmates CEO Bastian Lehmann told Term Sheet. “Tiger Global approached us and said it’s time to put some more gas in this machine. So we decided to show everyone what we could do if we invest a bit more heavily in growth.”
Last year, Postmates reported more than $1 billion in gross merchandise volume (the total sales value of food and other goods ordered on the Postmates platform). Postmates completes more than 3 million deliveries per month and claims it’s contribution margin-positive in 90% of the markets it operates.
Rumors are that Postmates discussed a merger with DoorDash in order to fend off competitors such as Uber, GrubHub, and Amazon.