Instant grocery store — where in-town consumers buy food and other essentials and have them delivered in 15 minutes or less — remains a big business, and one of the juggernauts in space is now raising a major round of funding to achieve that opportunity: Gopuff is in the process of raising $1.5 billion, with a valuation of up to $40 billion.
As far as we understand, the funding will be structured as a “Series X” convertible banknote from Guggenheim Partners. Other investors are not disclosed. The magnitude and nature of the raise, as a convertible bond, is a strong indicator that this is a round raising ahead of a liquidity event for Philadelphia-based Gopuff, most likely an IPO that could take place in mid-2022.
The funding process was first discovered and reported to us by Prime Unicorn Index (which Axios also reported separately). The round has yet to close and the raise value and valuation are the highest amount indicated in the submission.
The round comes quickly on the heels of some other events for Gopuff. This summer we broke the news that the company has raised $1 billion at a valuation of $15 billion, and in November the company was officially launched in London after two acquisitions, of Dija and Fancy, with plans to expand further in Europe. inside.
That European expansion has seen a number of M&A attempts in Europe: We confirmed with sources on both sides of the deal that Gopuff had made an offer to acquire Germany’s Flink – another instant supermarket player.
That deal failed to materialize — at least not yet — due to disagreements over valuation and a general appetite to be taken over, sources said. But it—and now this big round of funding—both underscore Gopuff’s intentions and considerations.
Flink, incidentally, was also approached by Amazon and is now supported by DoorDash, underscoring just how much competition Gopuff has here, but then again there are so many strong instant supermarket players in Europe that there will remain some options for it and others.