goPuff Raises $1.15B, Doubles Valuation
Consumer goods micro-fulfillment company goPuff raised $1.15 billion in a recent funding round, bringing its valuation to $8.9 billion. The company, known for its speedy delivery of convenience goods, has roughly doubled its valuation over the last five months, according to an announcement.
The Philadelphia-based company was founded in 2013 and currently operates more than 250 micro-fulfillment centers servicing more than 650 U.S. cities. Filling orders for consumer goods, including cleaning and home products, over-the-counter medications, food and beverages, alcohol (in some markets) and baby and pet products, goPuff has experienced significant demand during the Covid-19 pandemic for its $1.95 flat-fee delivery services. The company also boasts being open 24/7 in some cities and late night everywhere else to offer quick delivery.
goPuff is the second-largest convenience store delivery service in the U.S., behind DoorDash, which launched its convenience store delivery services in late 2020 to meet pandemic-fueled shopping behavior changes. DoorDash, which has a 60% market share of the convenience store delivery space as of Jan. 2021, offers the services under its DoorMart brand.
Investors in goPuff’s latest funding round include: D1 Capital Partners, Fidelity Management and Research Company, Baillie Gifford, Eldridge, Reinvent Capital, Luxor Capital and SoftBank Vision Fund 1.
“This milestone further validates the success of goPuff’s vertically integrated model as well as the massive global opportunity for the category,” said goPuff CEO and Co-Founder Yakir Gola. “Our technology platform and infrastructure enable us to expand goPuff’s offerings while bringing more products, new categories, and experiences to customers.”
With the funding, the company aims to expand into new geographies in the U.S. and internationally, offer new product categories and invest in technology and talent. Last year, goPuff acquired BevMo, a California-based alcoholic beverage specialty retailer, in a deal valued at $350 million. goPuff also expanded its services to offer brands media campaigns on its goPuff Marketing Solutions platform. It plans to launch new categories, including Better for You and Beauty, and enhance its Baby categories.
“goPuff is truly in a league of its own. We believe that the company's vision and differentiated model drive industry-leading economics and sustainable growth,” Daniel Sundheim, founder & chief investment officer at D1 Capital Partners, said in a statement. “Since we initially invested in goPuff last fall, we have been consistently impressed by the team’s ability to successfully execute against its growth plans. The company's potential is tremendous, and we look forward to the unique opportunities that lie ahead.”