Instant Delivery Company Gopuff Reaches $15B Valuation

·3 min read

Four months after raising $1.2 billion, instant delivery application Gopuff announced it has closed on a Series H round for $1 billion, reaching a $15 billion valuation.

The round was led by new investor Blackstone's Horizons platform and its previous investor Fidelity Management and Research Co. Participants in the round included previous investors Softbank Vision Fund 1, Atreides Management and Eldridge Capital, and new investors Guggenheim Investments, Hedosophia, MSD Capital and Adage Capital.

"As Gopuff continues to define the Instant Needs economy, we are thrilled to have new leading global partners on board, along with the support of our longtime investors," said Rafael Ilishayev, co-founder and co-CEO of Gopuff. "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."

Funding details: Gopuff

Funding amount

$1 billion

Funding round

Series H

Lead investors

Blackstone's Horizons and Fidelity Management and Research Co.

Secondary investors

Softbank Vision Fund 1, Atreides Management, Eldridge Capital, Guggenheim Investments, Hedosophia, MSD Capital and Adage Capital

Business goals for the round

Expand into more North American markets and the United Kingdom

Post valuation

$15 billion

Total funding

$3.43 billion

Much like its previous round, the company plans to use the funds to continue building microfulliflment ecosystems within North America and expand its footprint in the United Kingdom to offer customers 30-minute deliveries off various convenience store goods at a competitive $1.95 fee.

Just this week, Gopuff began offering its services in San Diego, bringing its total market exposure to 850 cities in the United States. In December, the company acquired the alcoholic beverage retailer BevMo!, including the delivery infrastructure at its more than 160 stores across California, Arizona and Washington.

Related article: It's time the logistics industry took notice of Gopuff

In order to scale its accelerating growth, the company has continued to strategically acquire companies.

In May, the company acquired the last-mile delivery platform Fancy to effectively expand its team into the United Kingdom and Europe, and is rumored to soon be acquiring London-based Dija, another grocery delivery startup, according to TechCrunch.

It also acquired San Francisco-based rideOS for $115 million in June to advance the company's routing technology for its on-demand fleet of delivery partners.

"rideOS is among the best mapping, dispatching and routing technology firms in the industry and we are thrilled to have them lead innovation in key sectors for Gopuff," said Sharad Sundaresan, Gopuff's senior vice president of product and growth. "This investment will enable Gopuff to continually improve the customer experience in more complex geographies as we continue to be a leader in the Instant Needs category worldwide."

Along with its recent acquisitions, the company introduced this month its newest experience, Gopuff Kitchen. Positioned next to its micro-fulfillment centers, these electric mobile kitchens prepare foods by their own recipes and in partnership with local brands. These ghost kitchens can be found in 20 of Gopuff's markets across the U.S.

As part of the venture, the delivery company acquired Austin-based Bandit Ventures Inc., an application-only coffee shop, earlier in July. The terms of that acquisition were not disclosed.

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

"[Co-founders] Rafael and Yakir [Gola] 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," said Minerd.

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