Company valued at $3.9 Billion as it grows,
Photograph courtesy of goPuff
PHILADELPHIA — GoPuff, the app-powered convenience store without a store, raised $380 million in new funding to further accelerate its geographic expansion, product category offerings and investment in talent. The funding round, which values the instant needs category creator at $3.9 billion, was led by existing investor Accel and D1 Capital Partners with participation from Luxor Capital and SoftBank Vision Fund, another previous investor. GoPuff also announced three new executives to its leadership team in newly created positions.
GoPuff operates in more than 500 U.S. cities, leveraging its network of more than 200 micro-fulfillment centers to complete customer orders, which are normally delivered in 30 minutes or less. GoPuff continues to further expand its product categories to include a greater selection of baby and pet products and over-the-counter medications. With a vertically integrated model, goPuff is able to add new products, like those in its newest cooking, baking and grocery categories, it said.
“GoPuff’s vertically integrated model and differentiated approach have created a superior customer experience and industry-leading unit economics,” said Daniel Sundheim, founder and chief investment officer at D1 Capital Partners. “We believe strongly in their vision and capacity to become the fastest and best delivery service for everyday needs.”
In addition to broadening its product inventory, goPuff is expanding in both new and existing markets. Over the last 18 months, the company has more than tripled the number of cities it serves, including recent launches in major metropolitan areas such as Dallas, Miami, Detroit, Minneapolis and Houston.
“From day one, we have always been customer-first and continue to be excited about the impact we’re making on people’s lives by changing the way they get the products that they want and need,” said Rafael Ilishayev, co-founder and co-CEO of goPuff.
“We’ve come a long way, but we’re also just getting started. This investment accelerates our ability to achieve our vision of becoming the world’s go-to solution for immediate everyday needs,” said Yakir Gola, co-founder and co-CEO of goPuff.
GoPuff also announced several hires to its executive leadership team. Jocelyn Wong, former chief marketing officer at Lowe’s, has joined as goPuff’s first chief customer officer. In addition to Wong, goPuff has added two consumer technology industry veterans to its leadership team. Jonathan DiOrio, Uber’s former global head of financial technology and U.S. business development, has joined goPuff in the newly created role of chief business officer. Former TripAdvisor engineering executive Rekha Singh joined goPuff as vice president of engineering.
“Accel first invested in goPuff in 2018 because of the team’s visionary approach to on-demand delivery and its commitment to building the infrastructure needed to create its unique, vertically integrated model,” said Ryan Sweeney, partner at Accel. “Because of goPuff’s focused approach, they have consistently delivered some of the best unit economics we’ve seen, while growing nationwide. We’re thrilled to remain a committed partner to Yakir, Rafael and the rest of the goPuff team on their journey.”
With micro-fulfillment centers in every market it serves, Philadelphia-based goPuff delivers thousands of products for a flat $1.95 delivery charge. GoPuff is open 24/7 in many markets and late night everywhere else.
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