Delivery Hero has invested $235m (£199m) in Gorillas in a move that values the Berlin-based grocery delivery company at about $2.1bn.
The deal means Deliver Hero owns 8% of the startup, which has more than 180 warehouses in nine countries. Gorillas raised almost $1bn in its third investment round and buyers included Tencent of China and New York-based Coatue Management.
Delivery Hero started as a food delivery platform in 2011 and now operates on four continents. It is branching out into “quick commerce” to deliver groceries and household goods to customers quickly. Delivery Hero said the Gorrilas investment was part of this plan.
Niklas Östberg, Delivery Hero’s chief executive, said: “Delivery Hero is on a mission to advance quick commerce globally and we see Gorillas as one of the leaders in Europe and the US. The Gorillas team has an exceptional customer focus driving the highest retention rates we have seen in the industry.”
The market for rapid deliveries is booming as consumers opt for the convenience of ordering online without leaving their homes. Delivery Hero, also based in Berlin, is battling Deliveroo and Just Eat to grab market share of meal deliveries and expand into other services.
Delivery Hero shares rose 1.5% to 115.95 at 10:49 BST.
