Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Capital Markets

Doordash, the leading US-based online food delivery company backed by <a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a> 's Vision Fund, has confidentially filed for an IPO last week. The company's plans to test investor appetite for a loss-making consumer tech player may appear daring given the rough equity markets. An alternate view is that Doordash's IPO move is probably led by desperation to secure funding given its aggressive discount led market share grabbing strategy has it needing more cash at a time when private funding has gotten scarce. Given the recent WeWork fiasco, we expect <a href="https://www.smartkarma.com/entities/doordash-inc" target="_blank" data-smartkarma-citation="entities:28881:1" rel="noopener">DoorDash Inc (0881510D US)</a> to play better. We think Doordash's IPO plans may probably have a third angle to it - timing. <a href="https://www.smartkarma.com/entities/doordash-inc" target="_blank" data-smartkarma-citation="entities:28881:1" rel="noopener">DoorDash Inc (0881510D US)</a>widened its industry market share lead in January 2020, as per recent data analytics reports (Second Measure), cementing itself as the market leader for now; overall industry grew 27% yoy while Doordash grew 89% yoy in Jan 2020. It also has announced plans to expand into the larger online grocery retail segment. Increasingly, more Americans are shopping online for meals as well as grocery; the trend is only likely to get stronger if concerns over corona outbreak convince more Americans to stay at home. A potential merger with Uber Eats ( <a href="https://www.smartkarma.com/entities/uber-technologies-inc" target="_blank" data-smartkarma-citation="entities:430:1" rel="noopener">Uber (UBER US)</a>)  is also under discussion, reportedly, at the behest of <a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a> whose Vision Fund has invested in both the entities. Whatever be the immediate driver behind its IPO plans, if the filing process goes well, Doordash stands a chance to pull off a timely IPO backed by its leadership status in the rapidly-growing online food delivery business and plans to expand into the high-potential grocery delivery segment. Its investment appeal and valuation upside could get better if a merger with Uber Eats concludes favourably; else the privately-established valuation of USD 12 bn could be difficult to justify.In the Pre IPO note below, we look at Doordash's competitive environment, possibility and potential for a merger with Uber Eats and possible sector consolidation. We discuss Doordash's plans to expand into grocery retail, its privately established valuation and the key sector risks.

Doordash, the leading US-based online food delivery company backed by Softbank Group (9984 JP) 's Vision Fund, has confidentially filed for an IPO last week. The company's plans to test investor appetite for a loss-making consumer tech player may appear daring given the rough equity markets. An alternate view is that Doordash's IPO move is probably led by desperation to secure funding given its aggressive discount led market share grabbing strategy has it needing more cash at a time when private funding has gotten scarce. Given the recent WeWork fiasco, we expect DoorDash Inc (0881510D US) to play better. We think Doordash's IPO plans may probably have a third angle to it - timing. DoorDash Inc (0881510D US)widened its industry market share lead in January 2020, as per recent data analytics reports (Second Measure), cementing itself as the market leader for now; overall industry grew 27% yoy while Doordash grew 89% yoy in Jan 2020. It also has announced plans to expand into the larger online grocery retail segment. Increasingly, more Americans are shopping online for meals as well as grocery; the trend is only likely to get stronger if concerns over corona outbreak convince more Americans to stay at home. A potential merger with Uber Eats ( Uber (UBER US))  is also under discussion, reportedly, at the behest of Softbank Group (9984 JP) whose Vision Fund has invested in both the entities. Whatever be the immediate driver behind its IPO plans, if the filing process goes well, Doordash stands a chance to pull off a timely IPO backed by its leadership status in the rapidly-growing online food delivery business and plans to expand into the high-potential grocery delivery segment. Its investment appeal and valuation upside could get better if a merger with Uber Eats concludes favourably; else the privately-established valuation of USD 12 bn could be difficult to justify.In the Pre IPO note below, we look at Doordash's competitive environment, possibility and potential for a merger with Uber Eats and possible sector consolidation. We discuss Doordash's plans to expand into grocery retail, its privately established valuation and the key sector risks. 

DoorDash: IPO in the Time of Corona. Daring, Desperate or Timely?

United States

DoorDash, Inc. provides restaurant food delivery services. The Company develops technology to connect customers with merchants through an on-demand food delivery application. DoorDash serves customers in the United States.

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DoorDash (DASH US)

DoorDash: IPO in the Time of Corona. Daring, Desperate or Timely?

Doordash, the leading US-based online food delivery company backed by Softbank Group (9984 JP) 's Vision Fund, has confidentially filed for an IPO...

Devi Subhakesan

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