Delivery company Gopuff wants to borrow as much as $300 million as a cash safety net as it deals with slowing growth, declining tech firm valuations and a faltering economy.
That’s according to a Tuesday (Aug. 30) report from The Wall Street Journal, which cited sources familiar with the company’s plans. Sources said Gopuff is nearing an agreement with bankers to set up a line of credit that would let the company quickly borrow money as needed — up to a certain amount.
See also: Gopuff’s Fast-Delivery Model Gets Tested in Changing Environment
Gopuff had planned to go public this year but postponed that move amid a decline in tech stocks. Last year, the company raised more than $2 billion — more than tripling its value — but has faced tougher times this year.
The Journal noted that Gopuff investor Fidelity Investments had slashed the value of its stake by nearly 50% as of June.
PYMNTS reported in July that the company planned to cut a tenth of its global workforce and shut down dozens of its warehouses, affecting about 1,500 workers on both the corporate and warehouse side of the company.
Read more: Delivery Firm Gopuff Cuts 1,500, Closes Warehouses
The move will close 76 Gopuff warehouses, helping the company consolidate its footprint. Gopuff conducted two other rounds of layoffs this year, including one in March involving roughly 450 people, or 3% of its 15,000-person workforce.
According to the Journal, sources familiar with Gopuff’s spending said the company had about $1.5 billion in cash after exhausting about $400 million in the first three months of 2022. The sources said Gopuff’s plan to raise a new line of credit demonstrates that it is trying to bolster its finances ahead of a possible economic downturn to expand the business.
