- Grocery-delivery startup Getir has acquired its German rival Gorillas at a hefty discount.
- Gorillas tried to raise capital to continue to operate on its own but has accepted the deal from Getir.
- The Berlin-based startup, which slashed jobs earlier this year, was valued at around $3 billion in 2021.
Troubled grocery-delivery startup Gorillas has been acquired by its larger Turkish competitor Getir for a hefty discount.
Insider first reported last month that Gorillas, only founded in 2020, would likely be sold at a discount. The Financial Times reported Friday that the Getir-Gorillas deal was worth $1.2 billion and mostly comprised equity. Gorillas was last valued at $3 billion in 2021. Insider has approached Getir and Gorillas for further comment.
Tiger Global-backed Getir, which was founded in 2015, confirmed the news in a statement on Friday. The company said its acquisition of Gorillas underscored how it led "consolidation" in the rapid delivery sector.
"Markets go up and down, but consumers love our service and convenience is here to stay," Getir founder Nazim Salur said.
"The super fast grocery delivery industry will steadily grow for many years to come and Getir will lead this category it created 7 years ago."
Gorillas was one of a batch of startups that emerged during the pandemic promising to deliver groceries to customers' doors in minutes. The Berlin-based company, which slashed hundreds of jobs in May, counted the likes of hedge fund Coatue, tech giant Tencent, and DST Global among its backers.
The startup benefitted from an era of cheap cash where investors were happy to pump capital into loss-making businesses, plus the pandemic inducing global lockdowns. However, a postpandemic shift in habits, the shift in macroeconomic conditions driven by high inflation, and the war in Ukraine turned investors cold on startups that are regularly losing cash.