DoorDash, makers of an iOS and Android food delivery app, raised $127 million in funding, which it will use to invest in its core technology “to build the first software-enabled logistics company”.

Through the app, users can purchase goods from local merchants and have them delivered “in less than 45 minutes – thanks to our revolutionary logistics technology”, the company said. Its focus is on restaurants.

The company also said it plans to grow and expand its operations “across the US and beyond” and build out its support and operations teams.

“The fact that in a tough economic market and in a crowded space we were able to raise more than $125 million without resorting to valuation gimmicks and employee-unfriendly terms is a testament to the incredible team, technology and opportunity at DoorDash,” said Tony Xu, CEO and co-founder.

In 2015 the company entered 19 cities, and  has more than doubled its staff by recruiting “engineers, entrepreneurs, military veterans and operators who have the skills and experience needed for DoorDash to thrive”.

According to a Bloomberg report last week, DoorDash has been under fire for not letting customers know its prices are often a lot more than actual restaurant prices, on top of which it also charges delivery fees ($4 to $7).

Xu defended this, saying “we don’t start a business by doing what everyone else does,” adding that the company plans to be more transparent in the future.

“We will list our service fee as a separate cost from menu prices in a few weeks,” he said.

Sequoia Capital led the round with participation from existing investors including Kleiner Perkins and Khosla Ventures. New investors include Y Combinator Continuity Fund and Wellcome Trust.