Delivery Hero buys minority stake in grocery delivery startup Gorillas – Reuters

The Delivery Hero's logo is pictured at its headquarters in Berlin, Germany, August 18, 2020. REUTERS/Fabrizio Bensch
BERLIN, Oct 19 (Reuters) – Delivery Hero (DHER.DE) on Tuesday said it had invested $235 million in Berlin-based grocery delivery company Gorillas, as the race to dominate the rapid delivery service sector picks up speed.
The purchase means Delivery Hero owns 8% of the fast-growing startup, which operates more than 180 warehouses in nine countries and has coveted 'unicorn' status little more than a year after its foundation.
The third, most recent round of investment has raised close to $1 billion and saw participation by China's Tencent, DST and Coatue Management, all of which had also been party to the last funding round in March, which raised $287 million.
Gorillas is now valued at about $2.1 billion in pre-money valuation, according to Delivery Hero.
"Delivery Hero is on a mission to advance quick commerce globally, and we see Gorillas as one of the leaders in Europe and the U.S.," Delivery Hero CEO Niklas Oestberg said.
The market for rapid grocery delivery services is booming: According to sources familiar with the matter, U.S.-based DoorDash is backing a new funding round at Gorillas' competitor Flink.
Gorillas advertises itself as being able to deliver basic grocery items within 10 minutes for a flat-rate fee of 1.80 euros – a model that the company says seeks to disrupt old-style food retail.
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