Instant grocery firm Getir has acquired rapid delivery rival Gorillas for US$1.2bn (£1bn), after weeks of speculation.
As previously reported by DeliveryX, the Turkish quick commerce start-up will acquire Gorillas in an all-stock deal. The combination is valued at US$10bn, and is another sign of consolidation in the rapid delivery market.
“Markets go up and down, but consumers love our service and convenience is here to stay,” said Nazim Salur, founder of Getir, in a statement confirming the deal without revealing financial terms.
“The super-fast grocery delivery industry will steadily grow for many years to come and Getir will lead this category it created seven years ago.”
According to the Financial Times, some of Gorillas backers will be left with little or no return on their investment, given the fall in valuation of Getir which it is reportedly slashing by approximately a quarter.
While, Delivery Hero, Coatue Management, Tencent and DST will be paid around US$40m (£32.5m) in cash, in addition to the equity in Getir.
Reports also suggested that job cuts are to be expected because of considerable overlap between the two companies’ network of small urban warehouses or “dark stores” in cities including London.
Kağan Sümer, the former Bain consultant who co-founded Gorillas in 2020, and has been its chief executive, is also expected to leave the company.
Gorillas financial issues have been well reported, it has been looking for a buyer since late summer when funding dried up.
People familiar with Gorillas’ finances told the FT that the Berlin-based company had spent almost all of the US$1.3bn it had raised. It had been losing an average of €1.50 for every €1 it generated in net revenue, burning through tens of millions of euros a month at the peak.
The company took out a loan to keep the business running while Getir completed its due diligence, one person said.
While, Getir was last valued at US$12bn (£9.8bn) at its most recent funding round in March.