Source: delivery startup Gopuff, which recently launched in London and NYC, raised $1.5B in convertible notes at a valuation of up to $40B
Context & Ripple Effects
By December 2021, Gopuff had been on a steep valuation climb all year — from a $8.9B raise in March on its flat-$1.95, sub-30-minute model across 650+ US cities, to a reported $15B by mid-year, alongside buying routing-software maker rideOS for a reported $115M (the rideOS acquisition). This $1.5B convertible note raise at up to $40B marks the top of that arc, funding fresh launches in London and NYC at the peak of pandemic-era delivery demand.
What came after makes the raise the reference point for the sector's reset: Gopuff was back seeking up to $300M in borrowing after burning ~$400M in early 2022, and by late 2025 had raised just $250M at an $8.5B valuation — roughly a fifth of this round's ceiling.
First-order effects
- Gopuff gets a $1.5B war chest priced off a paper valuation of up to $40B — more than double its mid-2021 mark — to fund its London and NYC launches against entrenched local incumbents.
Second-order effects
- Rival rapid-delivery players face a competitor with peak-cycle capital to subsidize entry into two new markets, pressuring them into matching spend or ceding ground; the structure also defers dilution questions until conversion.
Third-order effects
- When pandemic demand faded, the same company burned ~$400M a year, saw Getir exit the US entirely, and repriced to $8.5B — leaving Gopuff as one of the last fast-delivery startups standing, with the sector consolidating around whoever can reach cash-flow breakeven rather than whoever raised biggest.
The trend: Instant-delivery valuations crested in late 2021 on pandemic demand and cheap convertibles, then reset hard as burn rates outlasted the behavior shift — with survivors determined by unit economics, not fundraising ceilings.