Delivery startup Gopuff is prepping for an initial public offering (IPO) and is working with banks Goldman Sachs and Morgan Stanley on its planned float, which is expected later in 2022, Bloomberg reported on Wednesday (Jan. 26), citing unnamed sources with insider information.
Backed by Softbank’s Vision Fund, Accel, Blackstone, Baillie Gifford, D1 Capital Partners, and singer Selena Gomez, among others, Gopuff was valued at $15 billion last year. The sources said plans for the IPO were tentative and could be revised. Gopuff has raised over $3.5 billion in equity funding to date.
See also: Delivery Platform Gopuff Launches Private Label
Gopuff issued a $1.5 billion pre-IPO convertible note in December 2021 led by investor Guggenheim Partners, with participation by other debt holders.
“The note will convert to shares at either the IPO price or at a maximum valuation of $40 billion,” the sources told Bloomberg.
Founded in 2013 in Philadelphia by Drexel University students Rafael Ilishayev and Yakir Gola, Gopuff has grown its footprint across the U.S. and parts of Europe and operates in 1,000 cities. For a flat $1.95 delivery charge, the company delivers everyday essentials that include numerous products in multiple categories, in under 40 minutes.
Read more: Fast Delivery Startup Gopuff Expands to 10 UK Cities
Gopuff doesn’t shop for customers’ product requests in local stores. Instead, it operates more than 600 warehouses that serve as fulfillment centers. The startup works with RangeMe, a service that connects manufacturers and buyers, allowing retailers to source products to sell.
The inventory and end-to-end supply chain are owned by Gopuff, which cuts out the middleman and offers better prices for consumers and more profits for the company.
Earlier this month, Gopuff launched its first private-label brand. Last year, it acquired Fancy and Dija; both companies were integrated into the Gopuff app.
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