Gopuff, a US startup capitalizing on its instant delivery services of essential commodities for a flat fee of $1.95, closed a large tranche of funding to help it scale its service further across the country and worldwide. It has secured $1 billion in its latest Series H funding round.
The latest round of infusion values the Philadelphia-based company at $15 billion. The fresh funding comes on the heels of a $1.15 billion round earlier this year as it aims to become the go-to solution for immediate consumer needs.
Investors in Gopuff’s latest funding round include Blackstone’s Horizon platform, Guggenheim Investments, Hedosophia, MSD Partners and Adage Capital, and existing investors Fidelity Management and Research Company, Softbank Vision Fund 1, Atreides Management and Eldridge.
The instant delivery market is heating up
Quick commerce firms are witnessing high demand, especially for locally sourced products among their city-dwelling customers. Grocery items are topping the list in this category. Globally the delivery market is heating up with competitors like Getir, out of Turkey, backed by Sequoia and others.
Europe alone saw a surge in the number of such startups like Flink, Gorillas, Glovo, Zapp, Cajoo and Weezy. Even in India local startup including the ones in the food delivery segment is fast disrupting the quick delivery market. Gopuff co-founder Rafael Ilishayev said in a recent podcast interview that local products are “a powerful lever for stickiness with customers.”
Gopuff’s expansion plans
Founded in 2013, the company operates more than 450 sites across North America and the UK, including around 285 micro-fulfillment centers and the recently acquired BevMo! locations. The company is open 24/7 in many markets, as it looks to fulfill customer orders of food and drinks and cleaning, home, and other products.
“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 long-time investors. This funding round is further validation of the success of our model,” said Rafael Ilishayev, who is co-founder and co-CEO of Gopuff alongside Yakir Gola.
Gopuff will use the new funds to accelerate its expansion across North America, the UK and Europe, and enhance its technology and expand its team. Scott Minerd, the global chief investment officer of Guggenheim Investments, said, “Gopuff has quietly built a very strong business and solidified itself as the leading player, continuing to define this evolving category.