goPuff has raised an impressive sum of venture funding as the start-up delivery service gains popularity.
The new on-demand convenience store delivery service, goPuff, has announced its intention to expand into new markets. The company recently acquired an $5 million in venture funding from company investor Anthos Capital, bringing goPuff’s Series A investment round total to $8.25 million. These funds will be used to propel goPuff’s expansion into Portland, Ore and Houston in June, Minneapolis and Nashville, Tenn. in the next few months, and into at least seven additional cities by years end.
The Philadelphia-based company warehouses more than 3,000 products – ranging from snacks, drinks and ice cream to home goods, beer and electronics – delivered in 30 minutes or less. goPuff currently serves nine U.S. markets including New York City, Washington D.C., Boston, Austin, Texas, Denver, Seattle, Phoenix, Chicago and its hometown Philadelphia. This new capital will be used to support new market entry, marketing initiatives and operational expansion, including goPuff’s new 40,000-square-foot warehouse headquarters in Philadelphia.
“We expanded to our first three cities when we were completely bootstrapped. This additional funding is simply to accelerate our growth,” said Rafael Ilishayev, goPuff co-founder and CEO. “Ultimately, our goal is to provide the fastest and most affordable on-demand delivery option available in the market. Using technology to make our lives more efficient, goPuff is eliminating the need to visit traditional stores. Goodbye convenience store, Hello goPuff.”
The startup was co-founded in 2013 by Rafael Ilishayev and Yakir Gola, two Drexel University undergraduates, who initially delivered only 50 basic products before pivoting the company to a full, on-demand convenience store delivery service in 2014. What makes goPuff unique from other delivery services is that it has local warehouses in every city, stocked with inventory, allowing the company to bring the products directly to the customer. This means faster and more cost-efficient delivery as goPuff does not depend on other stores to operate. The startup is extremely popular among college students and Millennials, and has already attracted Snoop Dogg and players on the Philadelphia 76ers as customers, with revenue increasing 25% month-over-month.
To use the service, visit goPuff’s website or download the mobile app, type in your residential address and scroll through a wide range of products across 20 categories from snacks, groceries, household goods, office supplies, pet supplies and more, as well as beer and liquor stores(in select markets). Approximately 75% of goPuff’s sales come from food-related products. The company operates from 12 p.m.-4:30 a.m. in most markets (24/7 in others) and charges a flat $1.95 delivery charge, which is waived for orders over $49, with zero surcharges.