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Delivery startup goPuff raises $380m at a $3.9B valuation

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GoPuff is a Philadelphia-headquartered startup that delivers products like over-the-counter medicine, baby food and alcohol in 30 minutes or less. The new round was led by Accel and D1 Capital Partners, with participation from Luxor Capital and SoftBank Vision Fund.

Yakir Gola, who serves as co-CEO with his co-founder Rafael Ilishayevtold me their goal is to create “the go-to platform for over-the-counter medicine or household products or baby food or ice cream or even alcohol goPuff will deliver all these products in under 30 minutes, 24/7.”

While the startup has kept a relatively low profile in the media, it’s already available in more than 500 U.S. cities recent launches include Dallas, Miami, Detroit, Minneapolis, and Houston. And it has raised $1.35 billion in total funding, including a just-announced $380 million round that values the company at $3.9 billion.

“Accel first invested in goPuff in 2018 because of the team’s visionary approach to on-demand delivery and its commitment to building the infrastructure needed to create its unique, vertically integrated model,” said Accel partner Ryan Sweeney in a statement. “Because of goPuff’s focused approach, they have consistently delivered some of the best unit economics we’ve seen, while growing nationwide. We’re thrilled to remain a committed partner to Yakir, Rafael, and the rest of the goPuff team on their journey.

Despite the company’s impressive war chest, Gola said goPuff has had “a huge focus on fiscal responsibility” from the start. At first, the founders were the ones making the deliveries, and they funded their initial expansion with cash flow and profits.

“What was important for us from day one was to start a business that makes money, that has real margins,” he said.

To achieve that, Gola touted the startup’s “vertically integrated model,” where it buys products directly from manufacturers, then gets those products to consumers through a network of 200 “micro-fulfillment” centers (staffed with goPuff employees) and a network of independent drivers.

Besides meaning that goPuff “makes money off the products we sell”, Gola said this model allows the company to mix products from national and local brands, and it’s “constantly introducing new products and discontinuing things that don’t sell

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