Getir buys the app for 1.2 billion-FT
2022.12.09 09:20
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Getir buys the app for 1.2 billion-FT
Budrigannews.com – The Financial Times reported on Friday that Turkish fast-delivery company Getir closed on its acquisition of German rival Gorillas, valuing the combined entity at $10 billion.
According to sources familiar with the situation, the deal values Gorillas at approximately $1.2 billion, down from the $3 billion proposed in September of last year.
Reuters inquired for information, but neither Getir nor Gorillas immediately responded.
The FT also stated that job cuts were anticipated as part of the deal because the two companies’ network of small urban warehouses had a lot of overlap.
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Gorillas, a German app for grocery delivery that was launched in 2020, has tripled its business since raising $807 million last year, but it has not been profitable due to the uncertain economic outlook.
In June, Gorillas said that it expected to be profitable as a group within a year. The company had previously stated that it would reduce its administrative staff by half and lay off 300 employees as it focused on turning a profit rather than rapid expansion.
The Turkish company was also reducing its own valuation by approximately a quarter, according to the report, and it is also hoping to raise additional funding early next year.
Getir closed a $768 million funding round earlier this year that was led by Abu Dhabi state investor Mubadala and valued the company at approximately $12 billion.
Companies must pay for thousands of riders and logistic centers across cities in order to quickly deliver items like pasta, milk, and crisps to customers under the model of rapid grocery delivery.
However, there has been intense competition, and analysts are concerned that growth will slow as consumers return to their pre-pandemic shopping habits and as inflation continues to rise.
