goPuff Accelerates Geographic Expansion, Growth and Innovation with Acquisition of BevMo!

goPuff Accelerates Geographic Expansion, Growth and Innovation with Acquisition of BevMo!

Deal Significantly Bolsters goPuff’s Nationwide Reach with Presence Across California; Provides BevMo! Customers with an Enhanced Experience and Delivery Solution to Meet their Immediate, Everyday NeedsNovember 05, 2020 01:40 PM Eastern Standard Time

PHILADELPHIA & CONCORD, Calif.–(BUSINESS WIRE)–goPuff, the go-to platform for consumers’ everyday needs, today announced that it has entered into a definitive agreement to acquire BevMo!, the leading alcoholic beverage specialty retailer on the West Coast, for upfront consideration of $350 million.

goPuff accelerates geographic expansion, growth and innovation with acquisition of BevMo!Tweet this

“We’re proud to bring goPuff’s operations to California and look forward to investing in talent and real estate across the state,” said goPuff co-founder and co-CEO Rafael Ilishayev. “Partnering with BevMo! quickly advances our strategic objectives of providing more customers in new geographies with a seamless solution for their instant needs. Through this acquisition, goPuff will operate coast-to-coast, solidifying our presence as a leading, national consumer business.”

Powered by its industry-leading technology and unmatched distribution network of over 200 micro-fulfillment centers, goPuff currently serves customers in more than 500 U.S. cities. The acquisition significantly accelerates goPuff’s entry into California, and will provide millions of new customers in BevMo!’s network of neighborhood stores with access to immediate delivery of everyday items, including baby and pet productscleaning supplies, food and alcohol, along with local favorites.

“BevMo! has an extremely loyal customer base and a deep infrastructure across three states,” said goPuff co-founder and co-CEO Yakir Gola. “Bringing its iconic brand, locations and employees together with goPuff’s tech-driven, vertically integrated operating model positions us for unparalleled opportunity. We’re thrilled to welcome BevMo! employees to the goPuff team and look forward to building relationships with these new local communities.”

BevMo!’s footprint of 161 neighborhood stores located throughout California, Arizona and Washington provides extensive infrastructure for goPuff to seamlessly integrate into its network of local micro-fulfillment centers, enabling it to reach customers across the West Coast in 30-minutes or less. Through goPuff, BevMo! customers will soon have access to instant delivery of alcoholic beverages as well as everyday items across goPuff’s rapidly expanding product inventory.

“Joining goPuff, a company that has created a truly differentiated approach and defined the instant needs category, will allow us to better meet our consumers’ evolving needs, including delivering everyday essentials directly to their doorstep,” said Josiah Knutsen, CEO of BevMo!. “We look forward to helping introduce goPuff to California and working together to further enhance the experience for BevMo! customers and our communities at large.”

“On behalf of TowerBrook and the board, we want to thank the thousands of dedicated and talented employees that have helped make BevMo! the beloved brand it is today,” said Cathy Stauffer, Chairman of BevMo!. “goPuff shares our commitment to a superior customer experience and providing ultimate convenience. With different roots, but highly complementary business models, values and goals, goPuff is a perfect fit for BevMo!’s next chapter.”

The transaction is anticipated to close within 30 days, subject to customary closing conditions.

Evercore acted as financial advisor to goPuff in connection with the transaction. Cooley LLP acted as goPuff’s legal advisor.

J.P. Morgan provided financial advisory services to BevMo! Kirkland & Ellis LLP acted as BevMo!’s legal advisor in connection with the transaction.

About goPuff

goPuff is the go-to solution for immediate everyday needs, fulfilling customer orders of cleaning and home products to over-the-counter medications to food and drinks, and in some markets, alcohol – in just minutes. With micro-fulfillment centers in every market it serves, the company delivers thousands of products quickly for a flat $1.95 delivery charge. goPuff is open 24/7 in many markets and late night everywhere else to bring customers what they need, when they need it most.

Founded in 2013 by co-founders and co-CEOs Rafael Ilishayev and Yakir Gola, goPuff is headquartered in Philadelphia and currently operates more than 200 micro-fulfillment centers servicing over 500 U.S. cities. To learn more, visit or follow goPuff on Facebook, Twitter or Instagram. Download the goPuff app on iOS and Android.

About BevMo!

BevMo! is the leading alcoholic beverage specialty retailer in the western United States, with 161 stores located throughout California, Arizona and Washington. BevMo! provides a uniquely friendly and welcoming environment for competitively priced alcoholic and non-alcoholic beverages. The retailer also has a wide assortment of complementary products such as specialty foods and snacks, cigars, glassware and related bar and wine accessories. Its friendly and product-knowledgeable team members assist both enthusiasts and first-time buyers of wine, spirits and beer. BevMo!’s philosophy is simple: we help find the “perfect drink for every glass.” For more information, visit



Release Summary

goPuff accelerates geographic expansion, growth and innovation with acquisition of BevMo!

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Interesting because the Saudis, major investors, weren’t crazy about the cannabis trade.. This doesn’t put goPuff in, but maybe closer than before.
Cerner has a $10 billion contract with the VA. Wave the flag.
New officers named
Has worked with First Round Capital on multiple deals.
Former Spark exec.
from Drexel
Apple guy gets big surprise

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Report: goPuff raised $750 million led by Softbank

Tom Paine

I was planning a (short) update about Philly unicorns, and was wondering where goPuff stood. Last summer the tech biz website The Information reported that Softbank was considering a large investment in the Philly-based snacks & convenience home delivery startup, which was already labeled a unicorn having reached a billion dollar valuation.

The wire had since gone dead on that subject, and with the fallout from the WeWork debacle and stories about Softbank backing away from some investment opportunities at the last minute, I assumed it had walked away from goPuff. But not so fast; today The Information‘s Cory Weinberg and Amir Efrati reported that Softbank had indeed agreed to lead a $750 million investment in goPuff last August, with an option to invest $250 million more this year.

goPuff, founded by former Drexel students Rafael Ilishayev and Yakir Gola, has a strategy of building and stocking its own local distribution hubs rather than piggybacking off of other outlets, which is probably a more expensive route to achieve market coverage. It also needs to enhance its marketing to reach beyond college campuses, where word of mouth is strong.

The article didn’t address valuation, as I recall, only getting a peek before it disappeared behind the paywall. But the amount of the latest investment, which is larger than one might have thought, certainly makes goPuff a player among a small circle of major competitors.

Twitter Thread & Article discuss goPuff strategy

Tom Paine

Update: I overlooked the underlying article on The Information, which I hadn’t realized I had access to.

Accel, named in the article, must be the major VC partner. GoPuff authorized a Series D round in November of last year totaling at least $108.5 million, according to a state filing.  

“The latest financing last November valued the company at about $1 billion, according to people familiar with the matter.” 

The share price of its November round was more than 90 times what some of the earliest outside investors paid in 2015.

GoPuff has attracted veterans of Uber and Lyft to run marketing and growth out of a San Francisco satellite office.

A key to goPuff’s strategy is keeping its own inventory in its own local warehouses. The co-founders earn praise as operating managers.

Juul pods are said to be among goPuff’s highest grossing products.

BTW, Juul announced yesterday that it will soon require all retailers to use an updated point-of-sale (POS) system. When Juul products are scanned, the POS will prompt the retailer to scan the customer’s ID. Which may create hurdles in making those systems work remotely.

Also, my impression is that Juul may face further restrictions in the not-so-distant future. goPuff must also navigate a myriad of Alcohol restrictions. And some investors can’t invest in tobacco related ventures.

Josh Kopelman, though not an investor, took time to praise goPuff last November:

This twitter thread started in May by Cory Weinberg of The Information appears to confirm two things:

  1. That Philly-based goPuff is a Unicorn, with a valuation in excess of $1 billion
  2. That it has raised over $150mm, which is at least $140 million more than previously reported

Where the additional investment came from is not known, though one investor, 3L Capital, has been identified. But 3L couldn’t have supplied the entire amount goPuff is said to have received. The investment hasn’t shown up in the usual places on the web.

There have been suggestions that goPuff is trying to act in stealth mode, trying to build a national footprint before anyone notices.

Some other comments on the thread are enlightening.


Philly Enterprise PeopleNews August 11

Gotta have the beer
Arris, now part of CommScope, has a Horsham division


SoftBank considering investment in goPuff

Tom Paine

SoftBank is considering making a large investment in home delivery service goPuff, the website The Infomation reported.

The investment could be for several hundred million dollars, according to the article.

Philly-based goPuff has already reached Unicorn status, The Information says, but its been very quiet when it comes to announcing investment events.

SoftBank might have some channel conflicts with other startups its invested in, including Uber and DoorDash, and that has been an issue of debate within SoftBank.

Founded in 2013 by Drexel students  Rafael Ilishayev and Yakir Gola, goPuff grew like a weed and now serves 90 markets.

Speculation about SoftBank’s planned $108 billion Vision Fund ll (which isn’t certain to be the funding source for any investment in goPuff) has often involved questions as to how far SoftBank will have to search for investment opportunities, since it already reached many obvious ones through the first Vision Fund.

To date, goPuff funding per CrunchBase is $8.3 million from two rounds, the latest a 2016 Series A round led by Anthos. But goPuff must have gone beyond that amount already judging from its rapid expansion to 30 states, going down to Florida and to Arizona and Colorado to the west. So my guess is it already has more funding from somewhere.

But there are risks, as well as opportunities, in moving so quickly to establish a national footprint.

Update: Verified recent investor in goPuff:

Dan Primack’s Pro Rata reported in early July that “3L Capital tells Axios that it’s raised $217 million for its debut fund, which will make growth equity investments in consumer and enterprise tech companies.””

“It launched around 18 months ago, and used a warehousing facility to already invest around $100 million into companies like TheRealReal, Smile Direct Club, goPuff, SnackNation and ChowNow. “

Don’t know what kind of round was involved.

But The information piece said goPuff was already a Unicorn.