Delivery App GoPuff Doubles Valuation in 5 Months to $9 Billion

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GoPuff, a venture-backed delivery app and owner of BevMo!, more than doubled its valuation from five months ago to $8.9 billion, a bet by investors that habits formed during the coronavirus pandemic will stick.

The investment round brought in $1.15 billion, triple the amount GoPuff raised in October, the company said in a statement Tuesday. Dan Sundheim’s D1 Capital Partners, Fidelity Investments, Baillie Gifford, Luxor Capital and SoftBank’s Vision Fund were among the backers.

The pandemic has driven a surge in online orders of just about everything. Companies and investors are looking to seize on that interest and hook customers before they return to their old ways. Instacart Inc. added hundreds of thousands of workers over the last year, and Uber Technologies Inc. has expanded its delivery operations from restaurants while adding alcohol and groceries.

A pair of college buddies in Philadelphia started GoPuff in 2013 to deliver late-night snacks to their classmates at Drexel University. The business was profitable for the first two years until the founders switched their focus to expansion, a spokeswoman for GoPuff said.

GoPuff acquired the liquor chain BevMo! for about $350 million in November. The company now offers a bevy of everyday items in dozens of U.S. cities. Although the business doesn’t make money, operations in cities older than 18 months are profitable, the spokeswoman said.

©2021 Bloomberg L.P.

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