The round will value Gopuff at $8.5 billion, the Financial Times reported Thursday (Nov. 13), citing unnamed sources. That’s a decline from Gopuff’s COVID-era peak of $15 billion.
Top competitors to Philadelphia-based Gopuff, including Getir and Gorillas, have merged and exited the United States, the report said. Meanwhile, consolidations, such as DoorDash’s acquisition of Deliveroo, have reduced operating costs.
For Gopuff, the solution was to cut jobs and transform its business model, placing more focus on fresh produce, over-the-counter pharmaceuticals and a collaboration with Starbucks, said CEO Yakir Gola, per the report.
“When we raised the last round of capital, when it was in the end of 2021, we actually came to the company and said we’re going to focus on getting the company back to profitability,” Gola said, according to the report. “We realized that if we can be the best in the world at instant delivery, we’re going to win the long game.”
The new funding could help Gopuff continue expanding into new markets, the report said. It withdrew from European countries like France but still operates in England.
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“They were in the unique position to transition when the markets required a focus on profitability rather than a focus on growth,” said private equity investor Todd Boehly, whose Eldridge Industries is leading the funding round with Valor Equity Partners, per the report. “[Gopuff is] starting to think more broadly again about how do we capitalize on the fact that they’re really the last one standing with this business model.”
PYMNTS CEO Karen Webster spoke earlier this week with Gola about the way the Gopuff business has evolved. While Gopuff has long been associated with convenience shopping, Gola said the company has “actually become more of a grocery experience.”
The interview also touched on Gopuff’s $10 million relief commitment to Supplemental Nutrition Assistance Program users amid the government shutdown, allowing verified SNAP EBT cardholders, new or existing, to receive up to $50 in grocery credit.
“It’s in our culture to step up for the community and be there in times of need,” Gola said. “When we heard about the government shutdown and the delay in SNAP funding, we called a meeting and said, ‘What can we do for our customers?’”
