By Joshua Franklin and Anirban Sen
(Reuters) – Postmates Inc has revived plans for an preliminary public providing (IPO) following a string of dealmaking within the U.S. on-line meals supply service sector, individuals conversant in the matter mentioned on Monday.
The IPO would come amid a surge in demand for meals supply providers, as customers who’re staying at dwelling in the course of the COVID-19 pandemic order meals from eating places or have their groceries delivered at dwelling.
Postmates registered its IPO confidentially with the U.S. Securities and Exchange Commission in February 2019, however didn’t proceed with a inventory market debut.
Just Eat Takeaway.com NV’s $7.3 billion deal to accumulate GrubHub Inc earlier this month, in addition to current fundraisings by friends, satisfied it that the time had come to press forward, the sources mentioned.
Postmates might make its IPO registration public as early as July, kicking off what is often a course of lasting solely few weeks till it goes public, the sources mentioned, cautioning that the plans are topic to modifications in market situations.
The sources requested anonymity as a result of the matter is confidential. Postmates declined to remark.
Postmates was final valued at $2.4 billion, when it raised $225 million in a non-public fundraising spherical final September.
Founded in 2011, San Francisco-based Postmates accounted for 8 p.c of the U.S. meal supply market in May, with DoorDash main with 44 p.c market share, in keeping with analytics agency Second Measure.
In early June, DoorDash raised $400 million from non-public traders at a valuation of $16 billion. Also this month, grocery supply startup Instacart almost doubled its valuation to $13.7 billion with a non-public fundraising spherical.
(Reporting by Joshua Franklin in New York and Anirban Sen in Bangalore; Additional reporting by Krystal Hu in New York; Editing by Sandra Maler and Sonya Hepinstall)