Whoever said hunger is the greatest motivator in the world, wasn’t wrong at all. Anyone would agree with that statement once they know the story of Yakir Gola and Rafael Ilishayev.
It all started with the two college students at Drexel University wanting some Coke and M&Ms late one night without making a car and trip to the nearby convenience store.
They did not get what they wanted that night, but it led to the creation of a USD15 billion delivery start-up Gopuff in Philadelphia in 2013.
The company recently announced it has raised a USD1 billion Series H round that takes its valuation to $15 billion – more than four times its valuation less than a year ago when it raised USD380 million at a USD3.9 billion valuation.
The latest funding round includes new backers Blackstone and Guggenheim Investments, as well as existing investors Fidelity Management and SoftBank’s Vision Fund, among others.
With more than 450 sites across North America and the UK, including 285+ micro-fulfilment centres, Gopuff is the go-to solution for immediate everyday needs. They deliver everything from home products, over-the-counter medications, baby and pet products and food and drinks in just minutes for a flat USD1.95 delivery charge.
“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 long-time investors. 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,” said Ilishayev, co-founder and co-CEO.
Speaking to CNBC, Gola said: “When Raf and I started this company eight years ago, it was important for us to build a business that is very profitable and has really strong margins.
“When you look at our business, due to vertical integration, we make our margins off our product sales and our advertising business – not off drivers and service fees.”
With these new funds, Gopuff will continue to accelerate its strategic business initiatives including further geographic expansion across North America, deeper expansion into the UK and across Europe, hiring top-tier local talent, and focusing on enhancing its technology to continue to deliver an exceptional customer experience.
“Gopuff has quietly built a very strong business and solidified itself as the leading player, continuing to define this evolving category,” said Scott Minerd, Global Chief Investment Officer of Guggenheim Investments.
“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.”
Since its last funding round in March, the company has made several strategic acquisitions and executed on growth objectives including global expansion, introducing new verticals, and enhancing its proprietary technology. This includes acquisition of Fancy, a UK-based last-mile delivery platform that gets consumers their groceries and daily essentials in minutes; launch of Gopuff Kitchen, a new offering that brings made-to-order hot and fresh food to customers alongside everyday essentials, and acquisition of rideOS, an enterprise start-up that builds cutting-edge proprietary technology for advanced routing and on-demand dispatch.
