German meal-delivery giant Delivery Hero has invested about $235 million in online grocery startup Gorillas as part of a $1 billion funding round, sending Delivery Hero’s stock up 1% in morning trade.
Gorillas was established in May 2020 and has enjoyed rapid growth due to the increasing demand for its services during the Corona epidemic, as it delivers groceries to the doors of consumers’ homes within a period not exceeding 10 minutes, and is considered one of the many emerging European companies that compete within this crowded field, the list of competitors includes names such as Turkish Getir, British Zapp, Flink, which is its German counterpart, and Delivery Hero revealed that it led the financing round in Gorillas and acquired an 8% stake in it, and it is worth noting that Tencent, Coatue, DST and Dragoneer also participated in the investment round.
Delivery Hero is one of Europe’s largest online meal delivery companies, and competing with companies such as Deliveroo, Just Eat and Takeaway.com, the company has ambitions to succeed in express grocery delivery services as well.
Gorillas’ valuation reached $3.1 billion after injecting new funding into it, but this is much lower than the market value it was aiming to reach earlier this year when it stated that it was seeking to reach a valuation of $6 billion. Gorillas says she has an operating rate of $300 million, which means she expects to collect that amount annually, and for a company a little over a year old, that’s not a big deal.