Gopuff Secures $1 Billion Funding at $15 Billion Valuation

Gopuff Secures $1 Billion in Series H Funding

Gopuff, a company pioneering “instant” delivery of groceries and household essentials with a flat $1.95 fee, has successfully completed a substantial funding round. The startup has secured $1 billion in Series H funding, propelling its valuation to $15 billion.

Investment Details

The funding infusion comes from new investors including Blackstone’s Horizons platform, Guggenheim Investments, Hedosophia, and Adage Capital. Existing investors, such as Fidelity Management and Research Company, Softbank Vision Fund 1, Atreides Management, and Eldridge, also participated in this round.

This announcement corroborates earlier reporting regarding the closing of the Series H funding.

Expansion Plans

Gopuff intends to utilize these funds to broaden its reach across North America, the United Kingdom, and Europe. The company is actively expanding its operations in these regions.

Further investment will be directed towards increasing its workforce and refining the technological infrastructure that connects customers, delivery personnel, suppliers, and distribution centers.

Current Operational Footprint

Currently, Gopuff operates 450 locations throughout North America and the U.K. This includes over 285 dark stores – referred to by Gopuff as “micro-fulfillment centers” – and more than 185 retail partnerships established through the acquisition of BevMo earlier this year.

Capital Intensive Growth

The significant funding amount reflects the substantial capital investment required to build and maintain a logistics-driven, food-focused transportation network.

Competitive Landscape

Gopuff’s growth strategy unfolds within a rapidly intensifying competitive environment. Getir, a Turkish competitor backed by Sequoia and valued at $7.5 billion, is also aggressively expanding its services.

Europe presents a crowded market with companies like Flink, Gorillas, Glovo, Zapp, Cajoo, and Weezy all vying for market share. In the U.S., established delivery services like DoorDash are also poised to enter Gopuff’s core territory.

Gopuff’s Competitive Advantage

Founded in 2013 by Rafael Ilishayev and Yakir Gola, now co-CEOs, Gopuff initially addressed a need among university students. The company has since broadened its appeal to anyone seeking convenient, affordable access to essential goods.

The company experienced rapid growth during the COVID-19 pandemic, providing a convenient solution for consumers prioritizing safety and minimizing in-person shopping.

Gopuff believes in the long-term viability of the “instant” delivery model, a concept proven by companies like Getir.

Industry Expert Commentary

Scott Minerd, global chief investment officer of Guggenheim Investments, stated: “Gopuff has quietly built a very strong business and solidified itself as the leading player, continuing to define this evolving category.”

He further added, “Rafael and Yakir are focused on maintaining fiscal responsibility while having the ability to successfully execute on strategic growth opportunities. This measured approach along with Gopuff’s impressive offering has only just scratched the surface. We are thrilled to support this incredibly strong company and look forward to being part of Gopuff’s journey and continued expansion.”

Strategic Initiatives

Gopuff’s strategy involves enhancing its core instant delivery service with more efficient distribution and a broader definition of “essential” goods.

This includes establishing localized “dark” stores, launching “Gopuff kitchens” for ready-made food delivery, acquiring BevMo for $350 million in November 2020, and investing in logistics technology through the purchase of rideOS for $115 million.

Recent Fundraising Activity

Gopuff has been actively raising capital to fund its expansion. In March, the company secured $1.15 billion at an $8.9 billion valuation, following a $380 million round at a $3.8 billion valuation. These three recent rounds collectively represent approximately $2.5 billion in funding within a 10-month period.

Looking Ahead

“As Gopuff continues to define the Instant Needs economy, we are thrilled to have new leading global partners onboard, along with the support of our longtime investors,” said Ilishayev.

“This funding round is further validation of the success of our model and will enable us to continue to do what we do best: deliver an unmatched customer experience.”

Gola added, “We have truly doubled down on our key business priorities, accelerating our geographic expansion by entering new markets in the U.S. and abroad, innovating for our customers, and continuing to invest heavily in our technology, our people, and our partners.”

“We look forward to continuing to enhance the customer experience and to bring the magic of Gopuff to new customers around the world.”