Digital convenience store Gopuff has raised $1 billion in new funding at a $15 billion valuation as the retailer sets the pace for the c-store last mile. The funding will build upon the $1.15 billion Gopuff raised in March as the company expands across North America, deepens its presence in the UK and Europe and makes new hires to build its technology base.
The company operates more than 250 micro-fulfillment centers across the country, fulfilling orders for common items including cleaning and home products, over-the-counter medications, baby and pet products, food and drinks and alcohol. The company is focused on meeting “instant needs,” offering rapid delivery for a flat $1.95 delivery charge.
Gopuff has more than 300 vertically integrated facilities serving more than 550 cities across the U.S., with the goal of delivering all orders in under 30 minutes. While the retailer started out with a focus on college campuses, it has evolved alongside its millennial customer base and now serves a primarily 30+ demographic.
However, the company isn’t focused solely on the convenience market, and its massive fundraising rounds are helping it break into new verticals. The company acquired BevMo! for $350 million in November 2020, adding 161 stores that expanded its delivery network while also adding a brick-and-mortar presence. Additionally, it recently launched Gopuff Kitchen to offer made-to-order hot and fresh food.
While the company isn’t making headlines as often as some of its competitors, it has been quietly and consistently bulking up its capabilities. Gopuff has acquired Fancy, Fancy, a UK-based last mile delivery platform also focused on groceries and daily essentials, which helps expand its geographic footprint. Another acquisition, rideOS, gave Gopuff access to proprietary technology for advanced routing, on-demand dispatch and fleet optimization — important tools in an increasingly capacity-crunched last mile environment.
Gopuff has also joined retailers such as Walgreens in entering the media landscape with the launch of Gopuff Marketing Solutions, which enables brands to run media campaigns both on and off Gopuff’s platform.
The company also puts an emphasis on data and analytics. The Gopuff Business Insights practice looked at everything from its most popular items to its shoppers’ mental state in 2020 in its 2020 Consumer Year in Review. It also has examined the most popular products in its biggest cities.
“We have truly doubled down on our key business priorities, accelerating our geographic expansion by entering new markets in the U.S. and abroad, innovating for our customers and continuing to invest heavily in our technology, our people and our partners,” said Yakir Gola, Co-Founder and Co-CEO of Gopuff in a statement. “We look forward to continuing to enhance the customer experience and to bring the magic of Gopuff to new customers around the world.”
The latest funding round included participation from new investors including Blackstone’s Horizon platform, Guggenheim Investments, Hedosophia, MSD Partners and Adage Capital, along with existing investors Fidelity Management and Research Company, Softbank Vision Fund 1, Atreides Management and Eldridge.