Gopuff
- Gopuff is an "instant-needs" delivery operator that sells 4,000 items from booze to baby goods.
- The company told Insider it is profitable in "100% of markets older than 18 months."
- The ultra-fast delivery unicorn, available in 850 US cities, announced a $1 billion funding round.
- See more stories on Insider's business page.
Delivery unicorn Gopuff, born as a fast delivery service geared for college students looking for late-night snacks and smoking supplies, announced a new $1 billion funding round on Friday, growing its valuation to $15 billion.
The latest round- led by new investors such as Blackstone, Guggenheim Investments, Hedosophia, and Adage Capital – follows a $1.15 billion round in March, which at the time, valued the company at nearly $9 billion.
The fast-growing Philadelphia-based delivery operator has now raised a total of $3.5 billion.
Much of those VC funds have been raised in recent months as the company aggressively grows its delivery footprint in the US. As of July 9, online grocery firms globally have received about $14 billion in venture backing since 2020, according to data from PitchBook.
Gopuff bills itself as an "instant-needs" delivery operator whose 4,000-item product mix includes snacks, baby supplies, cleaning products, beer and wine, and over-the-counter medications.
Since November 2020, the company has more than doubled its fulfillment centers from 200 to more than 450 sites delivering to 850 US cities. This week, Gopuff launched delivery in San Diego, California.
Also in July, the company launched a fresh-food delivery operation dubbed Gopuff Kitchen. The company is using mobile kitchens set up near its micro-fulfillment warehouses to cook made-to-order delivery-only meals and drinks such as specialty coffee, breakfast sandwiches, chicken fingers, tater tots, and salads. This allows customers to bundle grocery orders with hot meals.
Gopuff has also been on a buying spree. Over the past few months, the delivery operator bought BevMo, Liquor Barn, the UK delivery startup Fancy, and Bandit. It has also struck a delivery partnership with Uber.
With $1 billion in new funds, Gopuff said it will continue to accelerate its expansion in North America, the UK, and Europe. It also plans to hire "top talent" and focus "on enhancing its technology to continue to deliver an exceptional customer experience," the company said.
Unlike third-party delivery companies like DoorDash, Gopuff said its direct-to-consumer business model is profitable. The company told Insider it makes money in "100% of markets older than 18 months."
Delivery times in most areas are between 20 and 40 minutes, with 24-hour delivery available in most of Gopuff's markets.
Gopuff's operation "has only just scratched the surface," Scott Minerd, global chief investment officer of Guggenheim Investments, said in a statement.
He added, "Gopuff has quietly built a very strong business and solidified itself as the leading player, continuing to define this evolving category."
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