DoorDash Talks to Invest in Grocery Startup Gorillas Ends
(Bloomberg) -- DoorDash Inc., the largest food delivery company in the U.S., has ended talks to invest in Gorillas Technologies GmbH after disagreements with the German delivery startup over expansion plans, according to a person familiar with the matter.
The San Francisco-based company was discussing investing $400 million in a deal that would have valued the startup at $2.5 billion, the person said. The news was reported earlier by The Telegraph. A letter of intent had been signed by both parties but the two sides couldn’t agree on a strategy. DoorDash wanted Gorillas to slow its expansion in the U.S. and focus on reducing its losses on the European operation, the person said, asking not to be identified discussing private information.
Gorillas is one of the most high-profile startups in the business of delivering groceries and other goods within minutes, an industry that has boomed during the pandemic lockdowns and attracted billions of dollars from venture capitalists. The company has been trying to raise new funds as it expands.
Founded last year, Gorillas raised about $300 million in its most recent funding round in March from investors including DST Global, Coatue Management and Tencent Holdings Ltd., boosting its valuation to just over $1 billion, according to data from Pitchbook.
San Francisco-based DoorDash is expanding internationally and has looked into the possibility of acquisitions in Europe, Bloomberg News has reported. DoorDash declined to comment on the talks with Gorillas. A representative for Gorillas said the company generally doesn’t comment “on speculations about financing rounds.”
©2021 Bloomberg L.P.