News

Gopuff is said close to finalizing a $1 billion funding round and is also cutting hundreds of jobs as a potential IPO for the grocery delivery service appears to being put off for a while.

The latest fundraising round is led by Guggenheim Partners and is being done throne a convertible note, according to a Bloomberg report. The $1 billion will add to Gopuff's current cash position of $2B.

Philadelphia-based Gopuff is cutting 3% of its global workforce of more than 15,000 companywide, including senior leadership, according to Bloomberg, which cited a memo sent on Thursday to employees.

The latest news comes after Bloomberg reported in December that Gopuff was said to be in talks with banks to prepare for an IPO in the second half of the year. Separately, Axios also reported in December earlier that Gopuff raised $1.5b at a valuation of around $40B. In late July, GoPuff announced that it raised $1B in new funding at a $15B valuation.

Gopuff has no plans to do an IPO in the near term due to the current market conditions, according to the latest Bloomberg report.

Gopuff competes with Instacart (ICART) as well as DoorDash (DASH), and Just Eat Takeaway's (OTC:JTKWY) Grubhub unit.

Also see from Wednesday, Wix partners with DoorDash for on-demand restaurant deliveries.