Getir bags food delivery rival Gorillas in a $1.2B deal
Getir, the Turkish instant food delivery company, has agreed to acquire German rival Gorillas in a deal that values the company at $1.2 billion, a further sign of the food tech shakeout.
Why it matters: As consumers adjust their behavior and investment capital has slowed, quick commerce companies find themselves forced to shrink, consolidate or fold.
Details: The deal will be financed by a combination of cash and Getir equity, per reports.
- Gorillas' investors include Delivery Hero, Coatue Management, Tencent and DST Global.
- Gorillas was valued at around $3 billion during its last fundraising the previous year when the Berlin-based company raised nearly $1 billion in Series C funds.
Meanwhile, Getir, which is backed by Mubadala Investment Co., an Emirati sovereign wealth fund, Sequoia Capital and Tiger Global, has cut its own valuation by around a quarter, per the Financial Times.
- The combined company is valued at around $10 billion, putting Getir’s valuation at about $8 billion, according to the FT.
- The online grocery startup was valued at around $12 billion when it raised $768 million in fresh funds earlier this year.
- Not immune to the sector fallout, Getir has cut thousands of workers this year.
State of play: Investors are shirking loss-making startups, forcing them to shut down or be acquired.
- Instant commerce companies that have shuttered include Buyk, Fridge No More and Zero Grocery.
- Recent M&A include Getir acquiring U.K.’s Weezy and Southern Europe’s BLOK, and Gopuff acquiring U.K.’s Fancy and Dija, and Flink of Germany acquiring Cajoo.
- The remaining startups in the once-hot sector include Philadelphia-based Gopuff, Latin America’s Jokr, and Flink.
- Meanwhile, publicly traded food delivery companies like Deliveroo, Just Eat Takeaway and DoorDash, many of which are vying for on-demand grocery delivery dollars, have seen their shares fall in the past year.
- In the U.S., Instacart delayed plans for an IPO as did Gopuff, which has cut thousands of workers.
By the numbers: Venture funding values in the food tech industry in Q3 fell 77% from last year’s levels while the number of deals fell 41%, according to PitchBook.