Gopuff, the “instant” grocery delivery startup that has been in the acquisition and expansion phase over the past few months to grow its business, is also fighting to raise funds to fuel these efforts. Documents uncovered by Prime Unicorn Index and shared with TechCrunch show that the startup has filed documents in Delaware to raise up to $ 750 million in a Series H funding round – for a valuation of 13. $ 5 billion if all shares are issued.
We’ve reached out to the company to confirm details and find out if the round has been closed, and will update as we know more. Spokespersons did not respond to emails and phone calls before the publication.
As with all Delaware filings, they only tell part of the story, and the company might ultimately lift more or less before the round closes.
In a certain funding environment, it wasn’t until March that Gopuff raised $ 1.15 billion for a valuation of $ 8.9 billion. And that cycle came just months after a valuation of $ 380 million (at $ 3.8 billion). Gopuff’s Instant Grocery model comes with instant funding, it seems: Together, the three towers would total around $ 2.25 billion in funding within 10 months. (Investors in the company’s previous rounds included Accel, D1 Capital Partners, Fidelity Management and Research Company, Baillie Gifford, Eldridge, Reinvent Capital, Luxor Capital, and SoftBank.)
Much like the race to invest in the on-demand transportation market, much of fundraising in the instant grocery store seems to be geared towards moving as quickly as possible to create technological, operational, and customer gaps.
So, for Gopuff, some of the money collected so far has been used to grow organically. That is, it invests in acquiring new customers and expanding its infrastructure – horsemen, ‘dark’ stores stocked with their products and, most recently, ‘Gopuff kitchens’ – in 650+ cities across the United States. where he’s already tapping his $ 1.95 plan. Delivery service “in minutes”. It will likely do so at a particularly rapid pace, as others like DoorDash are also competing seriously around the same model for quick deliveries of a limited selection of food and drink, basic necessities. and over the counter. medication.
But at the same time, some of the money she accumulates is also used for acquisitions. So far, these have been limited to the United States and have broadened Gopuff’s reach in that market. He bought alcohol retailer BevMo for $ 350 million in November 2020; and in June of this year, Gopuff acquired logistics technology company rideOS for $ 115 million.
The next step in this acquisition process seems to focus on acquiring similar businesses in key markets where Gopuff wants to be in the future, especially internationally, as it strives to fulfill the ambition. announced to reach $ 1 billion in revenue this year. (3x last year’s figures).
In June, rumors were circulating that Gopuff had approached Flink, an instant grocery player in Germany. While it hasn’t gone anywhere (yet?), Well-placed sources have told us – and, it seems, others – that Gopuff is also taking an international eye on England, initiating talks to acquire two different instant delivery companies based in London, first Fancy in February, and more recently Dija.
London is an extremely competitive market for instant grocery delivery at the moment – not least because it is dense and often difficult to circumvent, has demonstrated a strong consumer appetite for on-demand delivery services, and has a population of young people with an amount of disposable income to pay a little more for convenience.
It speaks of opportunity, but also perhaps too much hope. In addition to Dija and Fance, we have Turkish Getir, backed by Sequoia and a number of others on an ambitious international momentum at the moment; Gorillas (like Flink, from Berlin); Zap; and Weezy – all offering “instant” grocery delivery. And these are just the new stand-alone startups. Still to come: Established restaurant delivery players like Deliveroo who could also throw their hats in the ring.
Unsurprisingly, given this area, we’ve heard that Dija is struggling to raise more money, which has led the startup to seek out buyers as an alternative.
It’s a trend that’s playing out elsewhere as well: In Spain, Getir acquired Blok earlier this month, another new instant player who was struggling to rally investors. We have confirmed with well-placed sources that Dija also spoke with Getir in this context (which came to nothing) before Gopuff entered the scene. There will probably be more.
“It’s gonna be a bloodbath,” was how a large investor recently described the instant grocery market to me.
Since online grocery shopping remains a relatively minor part of the market – even with the pandemic and its shifting impact on e-commerce habits, it still accounts for less than 10% of sales, even in the busiest cities. supportive of adoption – there is still plenty to gamble on in the ‘instant’ grocery store. But if this latest round shows us anything, it’s that the most promising of these delivery companies will continue to raise a lot more money to position itself as a consolidator within it.
Additional reports: Natasha Lomas