German start-up Gorillas has raised nearly $1bn to expand its on-demand grocery delivery business.
The Series C funding round was led by Delivery Hero, the German food and grocery delivery giant that recently took a stake in Deliveroo.
Gorillas also received backing from existing investors including Coatue Management, DST Global and Tencent, as well as new investors G Squared, Alanda Capital, Macquarie Capital, MSA Capital and Thrive Capital.
The fresh funding comes just a few months after the company’s $290m Series B, which brought its valuation to more than $1bn.
Gorillas was founded in Berlin in 2020 by Kağan Sümer and Jörg Kattner, promising grocery deliveries in as little as 10 minutes.
It now operates more than 180 warehouses and has expanded to more than 55 cities in nine countries, including Amsterdam, London, Paris, Madrid, New York and Munich.
The company plans to use the latest funding for its next phase of development. This includes reinforcing its footprint in existing markets and investing in operations, technology and marketing.
“The size of today’s funding round by an extraordinary investment consortium underscores the tremendous market potential that lies ahead of us,” said Sümer, who is CEO of the start-up.
“With Delivery Hero, we have chosen a strong strategic support that is deeply rooted in the global delivery market, and is renowned for having unique experience in sustainably scaling a German company internationally.”
On-demand grocery delivery is a growing area in Europe that’s attracting investor attention.
Swedish start-up Kavall raised $5.8m in August, Czech player Rohlik hit unicorn status after its €100m Series C round in July, and Spain’s Glovo secured a €450m Series F round in April to expand in the grocery market.
Gorillas differentiates itself from other players in the market, such as Deliveroo, by employing its delivery drivers rather than relying on gig workers.
However, as the start-up has scaled rapidly over the past year, it has seen delivery workers protest over working conditions and pay, and been put under the spotlight for its treatment of employees.
Don’t miss out on the knowledge you need to succeed. Sign up for the , Silicon Republic’s digest of need-to-know sci-tech news.
The post Grocery start-up Gorillas raises nearly $1bn in round led by Delivery Hero appeared first on Silicon Republic.
This content was originally published here.
About the Author
