Instant grocery startup Gopuff is raising $750M more at a $13.5B valuation – ClearTips

Gopuff, the “instant” grocery delivery startup that has been on an acquisition and expansion tear to grow its business over the past several months, is also rushing to raise funds to fuel those efforts. Documents uncovered by Prime Unicorn Index and shared with ClearTips show that the startup has filed papers in Delaware at a valuation of $13.5 billion in a Series H round of funding of up to $750 million, if all shares are issued. go.

We’ve reached out to the company to confirm details, whether the round has been closed, and will update as we learn more. Spokespersons did not respond to emails and phone calls prior to publication.

As with all Delaware filings, they only tell part of the story, and the company may more or less raise before the round finally closes.

In terms of some funding, it was only in March that Gopuff raised $1.15 billion at a valuation of $8.9 billion. And that round came just months after a valuation of $380 million (at $3.8 billion). With Gopuff’s instant grocery model comes immediate funding, it looks like: The three rounds together will raise about $2.25 billion in funding over the span of 10 months. (Investors in the company’s past rounds include Accel, D1 Capital Partners, Fidelity Management & Research Company, Bailey Gifford, Aldridge, Reinvent Capital, Luxor Capital and SoftBank.)

Like the investment race in the transportation-on-demand market, a large part of fundraising at Instant Grocery is about scaling up as quickly as possible to create the technical, operational, and customer moat.

So for Gopuff, most of the money it’s raised so far has been used to systematically expand. That is, it’s investing in acquiring new customers and building out its infrastructure — riders, “dark” stores with their products, and most recently “Gopf Kitchens” — in the 650+ cities in the US where it already operates a $1.95 flat fee “in minutes” delivery service. It will be doing so at a particularly fast pace, given that others like DoorDash are also competing faithfully around the same model for quick delivery of a limited selection of food and drinks, household essentials, and over-the-counter. Moving on to. Medicine.

But at the same time, some part of the cash that is being accumulated is also being used for acquisitions. So far, these have been limited to the US and to expand Gopuff’s breadth in that market. It bought alcohol retailer BevMo for $350 million in November 2020; And in June of this year, Gopuff acquired logistics tech company RideOS for $115 million.

The next phase of that acquisition process looks like it may be focused on snapping similar companies in key markets where Gopf wants to be in the future, especially internationally, as it aims to reach $1 billion in revenue this year. works to fulfill a perceived ambition of (3x of last year’s number).

In June, there were rumors that Gopf had contacted Flink, an urgent grocer in Germany. While it hasn’t gone anywhere (yet?), well-established sources have told us – and, it seems, others – that Gopuff is also turning its international eye on England, a move between two different instant delivery companies. Involved in discussions for acquisition. London, Fancy back in February for the first time, and most recently, Deeja.

London is an extremely competitive market for instant grocery delivery at the moment – ​​not least because it is dense and often difficult to get around, it has demonstrated a strong consumer appetite for on-demand delivery services, And it has a population of young people with a good amount of disposable income to pay slightly more for the facility.

It speaks of opportunity, but possibly also a lot of hope. In addition to Dija and Fan, we have Turkey’s Getir, currently on an ambitious international roll backed by Sequoia and many others; Gorilla (like Flink from Berlin); zap; and Weezy—all offer “instant” grocery delivery. And these are just standalone, new startups. There’s still more to come: Established restaurant delivery players like Deliveroo who might as well throw their hat in the ring.

Perhaps unsurprisingly, given that sector, we’ve heard that Deeja is struggling to raise more money, and that has led to startups looking for buyers as an alternative.

It’s a trend that’s also trending elsewhere: Getir in Spain earlier this month acquired Blok, another new instant player that was struggling to get investors on board. We confirmed from well-established sources that Dija had also spoken with Getir in this context (which went nowhere) before Gopf entered the picture. There are likely to be more of these.

“It’s going to be a bloodbath,” a major investor told me recently of the instant grocery market.

Given that online grocery remains a relatively minor part of the market – even with the pandemic and its habit-changing impact on e-commerce, it is still less than 10%, even That—even in the most adoption-friendly cities—there’s still plenty of “instant” groceries to play in. But if this latest round shows us anything, it’s that the most promising of these delivery companies will continue to raise a lot of money to establish themselves as consolidators.

Additional reporting: Natasha Lomas

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