It looks like goPuff will keep reinventing what it means to be a convenience store.
The company announced March 23 that it has secured $1.15 billion in new funding, more than doubling its valuation to $8.9 billion in just five months. Investors in the round include D1 Capital Partners, Fidelity Management and Research Co., Baillie Gifford, Eldridge, Reinvent Capital, Luxor Capital and SoftBank Vision Fund 1.
“We are grateful for the confidence of our longtime returning partners as well as the new, top-tier institutions joining this round who understand our differentiation in the market. We look forward to their support as we accelerate our growth plans and continue to define and transform the instant needs space,” said Rafael Ilishayev, co-founder and co-CEO of goPuff.
The company says it will use the new funds to accelerate its strategic priorities, which include geographic expansion across the United States and internationally, introducing new product categories, and investing in new technology and top-tier talent that will further enhance the customer experience.
“This milestone further validates the success of goPuff’s vertically integrated model as well as the massive global opportunity for the category. Our technology platform and infrastructure enable us to expand goPuff’s offerings while bringing more products, new categories, and experiences to customers,” Yakir Gola, co-founder and co-CEO of goPuff added.
GoPuff says it will also continue to leverage its platform to enter new verticals and expand its thriving local partnership program. This includes investing in programs such as its recently launched media offering, goPuff Marketing Solutions (GMS), which enables brands to run media campaigns on and off goPuff’s platform to instantly reach consumers and translate those interactions into purchases.
Additionally, the company is launching new categories, like goPuff’s new Better for You, Beauty and enhanced Baby categories. It also recently debuted Curated Mystery Boxes and it has introduced over 500 new local products to the platform to expand and enhance the customer experience.
With micro-fulfillment centers in every market it serves, the company delivers thousands of products for a flat $1.95 delivery charge. GoPuff is open 24/7 in many markets and late night everywhere else.
"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,” said Daniel Sundheim, founder and chief investment officer at D1 Capital Partners. “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.”
Founded in 2013 by co-founders and co-CEOs Rafael Ilishayev and Yakir Gola, goPuff currently operates more than 250 micro-fulfillment centers servicing over 650 U.S. cities, in addition to the recently acquired BevMo! locations.