Prepping For An IPO, Postmates Raises Another $225 Million

Postmates is receiving another cash injection as the San Francisco-based delivery service prepares to go public, raising an additional $225 million from private equity firm GPI Capital that boosts Postmates valuation to $2.4 billion, up from $1.85 billion in January.

The funding round comes at the eleventh hour of a possible IPO for Postmates, a rare move and one that hasn’t been foreshadowed by the major tech IPOs that hit the markets this year. The No. 4 delivery service had been…

expected to publish its prospectus this month after confidentially filing for the offering in February and after reports it might be in talks with an acquirer, which the company has shrugged off.

Pre-IPO funding rounds sometimes act as bridge financing, signaling the company could be running out of cash. Or it could reflect’s a company’s desire to raise its valuation to benchmark it higher ahead of the IPO, University of Florida professor Jay Ritter says. Postmates declined to comment on its IPO plans or timing. The company had reportedly booked $400 million in revenue in 2018 and is not profitable.

“We are excited to have GPI as a partner and the lead of this round during such a pivotal year for Postmates,” said Postmates CEO Bastian Lehmann in a statement.

New York-based private equity firm GPI Capital says it often invests in late-stage, private companies, taking stakes up to…

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