DoorDash is heading for an IPO, and investors ranging from asset managers to city pension plans are set to benefit — here’s how they value their stakes

  • DoorDash on Friday filed paperwork to go public, detailing its various investors in a filing with the SEC. 
  • Mutual funds from asset managers like T. Rowe Price and Fidelity are investors, as well as the retirement plans for companies including Costco and American Airlines. 
  • Investors in those funds could be set for a windfall after the company goes public, which is likely before the end of 2020, according to media reports. 
  • Visit Business Insider’s homepage for more stories.

The San Francisco-based delivery startup DoorDash on Friday filed paperwork to go public, detailing its investors in a filing with the Securities and Exchange Commission and shedding more light on who is set to benefit from its initial public offering, from professional stock-pickers to airplane pilots. 

Giant institutional investors like Fidelity, through funds like its $125 billion Contrafund, and T. Rowe Price, through funds including its $61 billion Growth Stock Fund, are investors in the meal-delivery company.

Fidelity’s Contrafund invested in the startup in June, buying 192,670 shares for more than $44 million — a valuation of roughly $229.64 a share, according to the fund’s semi-annual report filing.

T. Rowe, the Baltimore-based asset manager, invested in the startup at two different times in its Growth Stock Fund — once this June and once last November. This June, T. Rowe pumped more than $22 million into DoorDash, for more than 97,000 shares, after the manager put more than $44 million into the firm last November for more than 234,000 shares.

T. Rowe’s valuation on DoorDash increased pretty significantly — it now values its original stake in the firm at $53.9 million, a more than 20% increase from the original $44 million in roughly six months. 

Other investors include employer-sponsored retirement plans for companies including American Airlines and Costco, and several pension plans. 

Former T. Rowe Price star manager Henry Ellenbogen, who launched his own fund Durable Capital in 2019, also participated in DoorDash’s June $400 million fundraise. 

Funds affiliated with Softbank, Sequoia, and the Singapore government, listed in the filing as Greenview, are its largest institutional shareholders, according to the DoorDash’s S-1 prospectus for an IPO. Softbank owns nearly 63 million shares, Sequoia owns 52 million, and Singapore 26.6 million. DoorDash did not break down share ownership by other investors that are not on the DoorDash executive leadership team.

Notable Silicon Valley venture capital firms like Andreessen Horowitz, Sequoia, and Softbank have also invested in DoorDash. The company said it was valued at $16 billion with its most recent funding round, and has raised some $2.5 billion in total funding, according to Crunchbase data. 

The startup, which competes with other delivery services like Uber Eats and Grubhub — and rivaled Postmates before Uber bought it earlier this year for $2.65 billion — is set to go public by the end of this year, according to earlier reports. Goldman Sachs and JPMorgan are joint bookrunners on the deal. 

Read more: DoorDash just publicly filed its IPO paperwork, revealing a nearly $150 million loss this year amid the COVID-19 delivery boom

T. Rowe Price has invested in DoorDash across funds

Here is a look at the T. Rowe Price funds DoorDash listed as investors in its Friday filing. 

  • T. Rowe Price Communications & Technology Fund
  • T. Rowe Price Growth Stock Fund
  • T. Rowe Price Global Stock Fund
  • T. Rowe Price Large-Cap Growth Fund 
  • T. Rowe Price Mid-Cap Growth Portfolio 
  • T. Rowe Price U.S. Equities Trust
  • T. Rowe Price Global Consumer Fund

MassMutual also holds DoorDash through its MassMutual Select T. Rowe Price Small and Mid Cap Blend Fund and other funds. 

Read more: POWER PLAYERS: Meet the 11 top executives helping DoorDash CEO Tony Xu navigate the coronavirus crisis and prepare the $16 billion company for a possible IPO

Fidelity has invested through its noted Contrafund

Here is a look at some Fidelity funds DoorDash listed as investors in its Friday filing.  

  • Fidelity Contrafund 
  • Fidelity Insights Investment Trust
  • Fidelity Contrafund: Fidelity Flex Opportunistic Insights Fund
  • Fidelity Contrafund: Fidelity Series Opportunistic Insights Fund

Fidelity Contrafund fund manager Will Danoff said in an interview with Barron’s last month that he favors companies set to benefit from remote conditions the pandemic has brought on.

“Every company is accelerating their digital transformation. That’s clearly helping a lot of tech companies. I’m keeping it simple and staying with companies where work-at-home, study-at-home is more a tailwind than a headwind,” said Danoff, who has overseen the fund since 1990. 

Retirement plans for massive companies and pension plans are shareholders in Doordash

DoorDash listed companies’ retirement plans and pensions as investors, too.

  • The Arkansas Teacher Retirement System
  • American Airlines 401(k) Plan and the American Airlines 401(k) Plan for Pilots
  • L’Oreal USA Employee Retirement Savings Plan
  • Costco 401(k) Retirement Plan
  • Colgate Palmolive Employees Savings and Investment
  • Union Pacific Corporation Master Retirement Trust
  • Delta Air Lines Defined Contribution Plans Master Trust
  • Tucson Supplemental Retirement System
  • City of Tallahassee Pension Fund
  • Toyota Motor North America Retirement Savings Plan
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