US-based on-demand food delivery service Postmates has raised $300m in additional venture capital funding led by Tiger Global Management.
With the latest investment, the San Francisco-based company has been valued at approximately $1.2bn.
As part of the funding agreement, Tiger Capital’s partner Scott Schleifer will join the Postmates as director.
Postmates is expected to invest funds on automation, technology team and platform to make its delivery network more efficient. Additionally, the company will spend money to expand its offerings.
It will enable the online food delivery start-up to compete with food-delivery business such as DoorDash, Square, GrubHub, Uber, and Amazon.com.
Postmates CEO and co-founder Bastian Lehmann said: “The transformation of how commerce moves in cities demands that we build the most innovative tools for businesses to keep up and distribute their products to the modern consumer-efficiently and cost-effectively.
“Postmates is proud to be the first and largest on-demand network that is enabling the growth of retail across the country, and today’s investment accelerates our ability to pair technology with the vitality of our neighbourhoods.”
Postmates provides access to more than 250,000 merchants to its customers across 400 US cities and Mexico City and offers real-time deliveries.
Postmates’ technologies boosted local brick and mortar retail sales by 4X1 in 2017 by setting up an alternative infrastructure for local and small businesses to compete against online e-commerce giants.
The goods delivery firm completes millions of deliveries a month and generates more than a billion dollars in gross merchandise volume (GMV) a year while driving profitability in 90% of its markets.