Philadelphia-based startup Gopuff is itself looking for a special delivery—of money.
The instant delivery service—that just last year closed funding rounds totaling more than $2 billion—is looking to borrow up to $300 million in a revolving credit line, The Wall Street Journal reported Tuesday.
Revolver loans allow companies to borrow money as needed.
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The report is the latest example of the extreme slowdown the instant delivery market has seen after the industry exploded during the pandemic as more people stayed home.
However, as much of the world has continued to open back up, services promising delivery in 30 minutes or less have watched their businesses slow as consumers are more willing to go out. That has led to a significant cooling of interest by investors who bloated the valuations of such companies.
Gopuff’s rocky year
Gopuff itself has already gone through two rounds of layoffs. The company announced it laid off about 3% of its workforce. Then just last month, it said it would slice another 10%—or about 1,500 U.S. employees.
In July 2021, Gopuff closed a $1 billion Series H round that valued it at $15 billion—however, the delivery market has severely shifted since.
Investors in the company include Blackstone, Guggenheim Investments, Accel, Adage Capital, Fidelity Management and Research Co., SoftBank Vision Fund, Atreides Management, Eldridge, Valor Equity Partners and others.
Founded in 2013, Gopuff has raised a total of $3.4 billion, according to Crunchbase data.
Illustration: Dom Guzman
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Author: Chris Metinko