Delivery Start-up GoPuff Now Has a Staggering $8.9B Valuation

GoPuff, the delivery start-up company that is being backed by SoftBank, has a valuation of $8.9 billion after a recent round of funding.

This valuation is more than double for the digital convenience store, compared to where the company stood just five months ago. The latest round of funding included an investment from SoftBank Vision Fund 1.

On Tuesday GoPuff announced that it had raised $1.15 billion in the new funding. The last funding round in October of last year valued the company at just $3.9 billion.

Launched in 2013, the company was founded by two college students at Drexel Univeristy and offers access to household essential items including snacks and over the counter medicines within about 30 minutes.

In a press release, GoPuff said the company will use the new funds to continue expanding across the U.S. and internationally. It company also plans to invest in new technology, talent and product categories, like beauty, baby products and healthier food offerings.
The company’s average users are in their 30s.

GoPuff’s service is available to users in more than 650 cities across the U.S. and orders are delivered via contracted delivery drivers that pick up items from the company’s roughly 250 micro-fulfillment centers that the company rents.

“We have people from all walks of life ordering goPuff, whether it’s a mom who needs her diapers or baby products delivered, or a pet owner that needs pet food,” GoPuff co-founder Rafael Ilishayev told CNBC’s David Faber on “Squawk On the Street” Tuesday morning.

He added, “We’re actually seeing the fastest year-over-year growth in these new innovative categories, rather than kind of the traditional core goPuff categories that we launched with.”

It was last November that GoPuff acquired alcoholic beverage chain BevMo! for $350 million. The company’s physical footprint includes over 160 stores operated by BevMo!.