DoorDash Inc. has upped the fundraising target for its forthcoming initial public offering and is now looking to raise as much as $3.1 billion from public investors.

The food delivery giant disclosed the revised goal today in a regulatory filing spotted by Bloomberg. It said in the same filing that the funds raised through the listing would be used as working capital and potentially to finance acquisitions. 

DoorDash, which is expected to stage its IPO this month, is looking to sell 33 million shares at $90 to $95 apiece. That’s up from the $75 to $85 range the company had set before. If DoorDash sells stock at the top end of the new range, the IPO will give it a market capitalization of $30 billion. 

The steep valuation DoorDash could receive reflects the strong revenue growth it has been experiencing since the start of the year. The three quarters ended Sept. 30 saw the company’s sales rise no less than 226%, to $1.9 billion, thanks to a surge in restaurant delivery orders. The extra customer momentum also gave DoorDash an opportunity to boost its bottom line: Losses narrowed to $149 million in the first three quarters of 2020 from $533 million a year earlier. 

Today’s price target increase indicates that the company believes investors will be willing to overlook its current lack of profitability on account of its rapid top-line growth. DoorDash plans to continue prioritizing growth in the wake of the listing. “We expect our costs will increase over time and our losses to continue as we expect to invest significant additional funds towards growing our business and operating as a public company,” DoorDash stated in its IPO filing.

Even at the low end of DoorDash’s new $90 to $95 price range, the listing would be one of the biggest tech IPOs of the year. The offering is also shaping up to be a sizable exit for the company’s investors: DoorDash was worth $16 billion after its last private funding round, just over half the $30 billion valuation it could receive in the IPO.

The company is one of several tech firms expected to hit the stock market before year’s end. The list also features Airbnb Inc., which is seeking a valuation of nearly $35 billion, and ContextLogic Inc., the operator of the popular Wish e-commerce app used by more than 100 million shoppers worldwide. 

Photo: DoorDash