Delivery Hero Leads $1 Billion Funding Round for Gorillas
Delivery Hero SE invested $235 million in Gorillas Technologies GmbH, part of a nearly $1 billion funding round for the Berlin-based grocery startup.
Delivery Hero will acquire about 8% of Gorillas in the transaction. Tencent Holdings Ltd., Coatue and DST were among the other investors that participated in the deal, Delivery Hero said in a statement on Tuesday.
The transaction would raise the company’s valuation to roughly $3 billion after the deal closes. Bloomberg News reported about the investment plans last month.
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, but those talks broke down over disagreements regarding expansion plans.
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.
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