Delivery Hero Said to Invest in Gorillas at $3 Billion Value
Delivery Hero Is Said to Invest in Gorillas at $3 Billion Value
(Bloomberg) -- German food delivery company Delivery Hero SE plans to invest in grocery startup Gorillas Technologies GmbH as part of a $1 billion funding round, according to people familiar with the matter.
The new financing will value Gorillas at about $3 billion after the deal is closed, said the people, who asked not to be identified because the discussions are private. Delivery Hero is set to invest close to $200 million, the people said.
Prospective valuations for Gorillas have ranged widely this year. As of May, it had been seeking funding at a valuation of more than $6 billion. U.S.-based DoorDash Inc. was negotiating an investment this summer that would have valued Gorillas at $2.5 billion. Those talks broke down over disagreements regarding expansion plans, Bloomberg News reported last month.
A representative for Delivery Hero said the firm is “always looking for new opportunities to drive the industry forward,” and declined to comment further. A Gorillas spokesperson declined to comment on “funding speculations.”
Gorillas is among a group of rapid grocery delivery services that’s gained traction over the past year as people spent more time shopping at home during the coronavirus pandemic. The company sells fresh produce and other items delivered from urban fulfillment centers to customers’ doorsteps within 10 minutes.
Investment has been pouring into these companies from more established takeout-delivery businesses, which see the industry as a natural extension from restaurant meals. DoorDash is leading a fundraising round in another German company, Flink SE, that values the business at $2.1 billion, people familiar with the matter said Thursday. Turkish grocery app Getir has raised more than $1 billion this year.
Some details of the talks were reported earlier by the German publication Manager Magazin. The deal isn’t yet complete and could fall apart.
Gorillas has raised hundreds of millions from investors including Coatue Management, DST Global, Tencent Holdings Ltd., Atlantic Food Labs and Dragoneer Investment Group. Its last round in March gave Gorillas a valuation of more than $1 billion.
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