Philadelphia based startup goPuff that helped kickstart a new category of food delivery in the U.S. — "instant" delivery of essential groceries and other home goods for a flat fee of $1.95, 24 hours a day — has closed a $1billion Series H round. The new round sees the value of the startup rise to $15 billion.
This is goPuff's third funding in the space of 10 months. It raised $1.15 billion at an $8.9 billion valuation in March, which came just months after a $380 million round at a $3.8 billion valuation. Together, the three most recent rounds total around $2.5 billion in funding.
New backers include Blackstone's Horizons platform, Guggenheim Investments, Hedosophia and Adage Capital. Previous backers Fidelity Management and Research Company, Softbank Vision Fund 1, Atreides Management and Eldridge Capital participated in the round.
Speaking on the latest development, Scott Minerd, 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. Rafael and Yakir are focused on maintaining fiscal responsibility while having the ability to successfully execute on strategic growth opportunities."
"This measured approach, along with goPuff's impressive offering, has only just scratched the surface. We are thrilled to support this incredibly strong company and look forward to being part of goPuff's journey and continued expansion," he added.
Founded back in 2013 by Rafael Ilishayev and Yakir Gola while they were still in university to fill a gap they saw in the market for students like themselves, goPuff has expanded well beyond that by catering to anyone looking for a quick and relatively low-cost way of getting essential goods without physically going out to get those items themselves.
“As goPuff continues to define the Instant Needs economy, we are thrilled to have new leading global partners onboard, along with the support of our longtime investors,” Ilishayev said in a statement. “This funding round is further validation of the success of our model and will enable us to continue to do what we do best: deliver an unmatched customer experience.”
“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,” Gola added. “We look forward to continuing to enhance the customer experience and to bring the magic of goPuff to new customers around the world.”
goPuff said it plans to use the funding to continue expanding in North America, the U.K. and Europe, on more hiring; and to continue building out the tech platform that bridges an ecosystem that includes customers, drivers, suppliers and distribution centres.