BevMo is a recent Acquisition Target

Softbank-backed delivery startup goPuff on Thursday said it will acquire alcoholic beverage chain BevMo! for $350 million, paving the way for the company to enter the California market.

The agreement also means goPuff, which currently provides on-demand delivery of household goods in 500 cities, will significantly expand its infrastructure with the addition of BevMo!'s 161 stores in California, Arizona, and Washington.

The announcement comes less than a month after goPuff raised $380 million in a round led by Accel and D1 Partners. Investors also included the Softbank Vision Fund and Luxor Capital, bringing the company's valuation to $3.9 billion. GoPuff was started by co-founders Yakir Gola and Rafael Ilishayev seven years ago when they were students at Drexel University.

"Our view is, BevMo! is an amazing brand. It's an iconic brand, great customer base, great distribution network, and we thought this is a logical move for us and a big move to bring goPuff to California," Gola said.

The deal makes sense particularly during the pandemic, according to some industry experts