Echo Wang, Krystal Hu, and Anirban Sen

(Reuters) – Gopuff (a SoftBank Group Corp backed delivery startup valued at around $15 billion last fiscal year) has tapped banks for preparations to a U.S. initial publicly offered (IPO), according to people who were familiar with the matter on Tuesday.

Gopuff USA, which has 1,000 locations in America and Europe, operates with Morgan Stanley (NYSE: Goldman Sachs Group Inc (NYSE 🙂 plans to float its stock market, expected in later this year according to sources. The sources also said that it plans to tap into other underwriters such as JPMorgan Chase, (NYSE:).

Sources cautioned that market conditions could affect the size, timing and valuation of the IPO. Because the conversations are confidential, all sources asked for anonymity.

Gopuff, Morgan Stanley and Goldman Sachs declined to comment.

According to sources, GoPuff will be worth a substantial premium to the $15 billion it received in July from its fundraise. Gopuff was only valued at $4 billion during an October 2020 fundraise.

According to sources, the company issued a convertible bond in December to raise $1.5 million from Guggenheim Investments as well as other debt holders. According to sources, the notes will be converted into equity at either an IPO price of $2.5 billion or a maximum valuation at $40 billion.

Gopuff has been busy with its IPO preparations. It is anticipated to rank among the most important flotations in this year’s market, despite less-than ideal conditions for stock market launches.

Volatility is causing a variety of IPOs have had to be delayed while companies have had to rethink the plans. However, IPO bankers say that the deal pipeline is healthy.

Gopuff was founded in 2013 by two college students, Rafael Ilishayev & Yakir Gola. It has since grown to be one of the most popular on-demand delivery companies. This was made possible by the widespread lockdowns that occurred during the COVID-19 Pandemic, when people had to rely heavily on online delivery companies.

Gopuff, a Philadelphia-based delivery platform, delivers foods, alcohol, medicines, and other items at an affordable $1.95 flat rate.

Gopuff currently has 600 mini warehouses. Gopuff owns the inventory as well as an end-to-end supply network, which will help it make more money. Gopuff launched its first brand under its own name earlier in the month.

Gopuff has received equity funding in excess $3.5 Billion to date. Its prominent backers include Accel, Blackstone (NYSE;), Fidelity Management and Selena Gomez.