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Delivery Hero buys minority stake in delivery start-up Gorilla

October 20, 2021

Delivery Hero buys minority stake in delivery start-up Gorilla

Delivery Hero on Tuesday said it had put $235 million in Berlin-based grocery delivery organization Gorillas, as the race to divide the rapid delivery service sector picks up speed.

The purchase means Delivery Hero possesses 8% of the quickly developing start-up, which works in excess of 180 distribution centres in nine nations and has desired ‘unicorn’ status minimal over a year after its foundation.

The third, latest round of investment has raised near $1 billion and saw participation by China’s Tencent, DST and Coatue Management, all of which had also been party with the last funding round in March, which raised $287 million.

Gorillas is presently valued at about $2.1 billion in pre-cash valuation, as per Delivery Hero.

“Delivery Hero is set for rapid grocery delivery all around the world, and we consider Gorillas to be one of the leaders in Europe and the US,” Delivery Hero CEO Niklas Oestberg said.

The market for quick grocery delivery service is booming. According to sources acquainted with the matter, US-based DoorDash is backing another funding round at Gorillas’ rival Flink.

Gorillas promotes itself as being able to deliver basic grocery items inside 10 minutes for a level rate charge of 1.80 euros – a model that the organization says seeks to disrupt old-style food retail.

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