The U.S. rapid commerce company Gopuff added some weight to its leadership team this week. The move seems to be part of an effort to improve its operations chops as it tries to raise more capital. The company is seeking a fresh $1 billion in an increasingly tight fundraising environment.
Gopuff has carved out a niche in delivering groceries, sundries, and booze in 30 minutes or less.
The company operates in more than 600 locations across the US and Europe. Gopuff currently delivers q-tips and six-packs in more than 1,200 cities across four countries. It says it serves nearly 4 million customers globally.
Getting in Fighting Trim
Seattle-based Renz is currently an EVP at the fintech SoFi. But her previous job as Amazon’s VP of Delivery Experience seems most relevant here.
“Maria has an incredible track record of successfully leading cross-functional teams, strategically executing on new initiatives, and constantly innovating,” said Gopuff co-CEO and co-founder Yakir Gola. “We are excited for Maria to take the reins and help lead our business into its next phase of growth as a truly global leader with a local focus.”
Renz’s appointment comes on the heels of Gopuff’s widely reported plan to lay off about 450 people. That amounts to about 3% of its global workforce, all an effort to reduce its burn rate as it seeks fresh funding. So far at least, the $1 billion Gopuff is trying to raise hasn’t materialized, though for all we know an announcement is imminent.
The company says it is generating an average of $4+ contribution profit per order. But it clearly needs to signal that it understands it has to become more efficient.
Gola and Rafael Ilishayev founded Gopuff in Philadelphia in 2013. Since its launch, the company has raised $3.4 billion. Logistics businesses are pretty notorious for eating up capital. And Gopuff has been aggressive. It has made six acquisitions since its start, mostly recently the liquor store chain BevMo.
And it has expanded internationally. In fact, its other significant recent hire, Gopuff brought on Bryan Batista as SVP of its international business. This signals to us that more international expansion is on the horizon.
Clearly, the company needs a lot of cash to keep up this pace of growth. It appears to hope that tightening its operations and bringing in more talent will pry open investors’ wallets.