When will Gopuff pull the cord on an IPO?

Tom Paine

There is almost a kind of meme for anticipating a Gopuff IPO, which possibly could come later this year. This is was what Reuters reported at the time of Gopuff’s new billion dollar round in March:

“A source close to the matter told Reuters that GoPuff has already started discussions with financial advisers and banks and are mulling whether to go forward through a traditional initial public offering or a merger with a special-purpose acquisition company.”

if Gopuff, now valued at $8.9 billion, can stay roughly on track with its goal of tripling revenue this year (again) while keeping operating losses under control, and demonstrating profitability in its longest established markets, then it would probably be a go. The biggest risk could be a slow down in the market and its receptivity to highly valued IPOs, which indeed is possible later this year (in my opinion).

But the nature of Gopuff’s business adds to the allure. Unlike some enterprise software product, the Gopuff brand is becoming known widely as it expands across the nation. And the people who like the brand or at least appreciate its convenience, may become enamored with the idea of owning a piece. The rumor mills on the web are heating up.

It could be that the only thing that may slow Gopuff down in the short term would be a shortage of drivers.

DoorDash’s December IPO was a huge positive to SoftBank’s market value (although its becoming more of a direct competitor to Gopuff as it adds dark stores), so I can only imagine that SoftBank anxiously anticipates an eventual Gopuff offering.

Also, people should be prepared for efforts to acquire Gopuff that could come at any time.

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