Venture Capital: Getir Buys Gorillas For $1.2B
Getir is a Turkish online grocery startup while Gorillas was a German rival.
In a sign of the consolidation sweeping across the rapid delivery sector, Istanbul-based online grocery start-up Getir has acquired German competitor Gorillas in a deal valuing the latter at $1.2 billion. Both participants in the deal managed to weather the tech meltdown that decimated valuations at many smaller grocery apps and led to their closure. Combined, the group is valued at $10 billion. (FT)
Gorillas’ $1.2 billion valuation is down from $3 billion last year, while Getir, at $8.8 billion, has come down from $11.8 billion in March. The decline in valuations is symptomatic of investors’ increasing apathy towards loss-making startups. In the current deal, some Gorillas investors may not earn any return at all on their investment. The deal envisages a payment of about $40 million in cash, and the rest in shares of Getir.
Shares in listed food delivery companies including Delivery Hero, Deliveroo, Just Eat Takeaway and DoorDash have plunged roughly by 60% in the past 12 months.
“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.”
With its last fund raise all but spent, and mounting losses, Gorillas was forced to take out a loan to tide over the time Getir took to complete its due diligence.
Changes are therefore expected at Gorillas, including the expected departure of Kağan Sümer, the former Bain consultant who co-founded Gorillas in 2020 and has been its chief executive.
Also, given the extent of overlap between the two companies’ warehouse networks, the group may axe a number of jobs.
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