Gorillas Raises $1 Billion in Series C Funding

Gorillas Secures $1 Billion in Series C Funding

Berlin-based Gorillas, a provider of on-demand grocery delivery and operator of dark stores, has successfully raised approximately $1 billion in its Series C funding round. This substantial investment reflects the significant and growing investor enthusiasm for urban food shopping applications throughout Europe and beyond.

Delivery Hero Leads the Funding Round

Germany’s Delivery Hero is leading this funding round, having invested $235 million in Gorillas. This investment secures Delivery Hero approximately 8% ownership in the rapidly expanding grocery delivery service.

Valuation and Market Position

Gorillas achieved a unicorn valuation in March of this year, despite being founded only recently. The company is now valued at $2.1 billion, pre-money, and claims this Series C represents the largest funding round for a non-listed company within the European grocery delivery sector.

Kağan Sümer, CEO and founder, commented on this significant milestone.

Investors Participating in the Round

In addition to Delivery Hero, existing investors such as Coatue Management, DST Global, Tencent, Atlantic Food Labs, Fifth Wall, Greenoaks, and A* are also participating. New investors include G Squared, Alanda Capital, Macquarie Capital, MSA Capital, and Thrive Capital.

Operational Network and Expansion

Gorillas operates a network of strategically located urban dark stores. These facilities enable the fulfillment of orders for rapid grocery deliveries within the cities it serves. Currently, the service is available in over 55 cities, including Amsterdam, London, Paris, Madrid, New York, Milan, and Munich.

Growth and Workforce

Since its establishment in June 2020, Gorillas has expanded its operations to include more than 180 warehouses across nine international markets. The company’s employed couriers, operating under fixed-term contracts, have delivered over 4.5 million orders in the last six months.

Strategic Shift and Future Focus

The company is transitioning into a new phase of business, following a period of rapid international expansion. This phase will concentrate on developing a scalable and robust business infrastructure while simultaneously pursuing accelerated growth.

The Series C funding will be allocated to strengthening its presence in existing markets and further investing in operations, personnel, technology, marketing, and financial infrastructure. This investment aims to maintain a strong focus on customer experience.

Delivery Hero’s Commitment to Quick Commerce

Delivery Hero, the lead investor, emphasized that this investment underscores its dedication to quick commerce (q-commerce) on a global scale.

Niklas Östberg, CEO and co-founder of Delivery Hero, stated that Gorillas has established new standards in the delivery industry by providing an efficient and sustainable alternative to traditional grocery stores. He expressed excitement about becoming a part of Gorillas’ journey.

Östberg further noted that both companies prioritize building a strong community and believe the investment will positively impact employees, consumers, and the industry as a whole.

Revenue and Growth Trajectory

Delivery Hero highlighted Gorillas’ exceptional customer focus, which drives high retention rates. The company has achieved a revenue run rate exceeding $300 million in just one year, with continued double-digit monthly revenue growth.

Market Context and Competition

Prior to Gorillas’ founding, TechCrunch discussed the grocery delivery market with Östberg, who observed a growing customer willingness to have more than just hot meals delivered.

Currently, the European on-demand delivery landscape is characterized by volatility and high cash burn rates.

Competitive Landscape

Other prominent players in the convenience grocery space include Berlin-based Flink, Istanbul’s Getir, Barcelona’s Glovo, and London’s Zapp. Numerous other startups are also vying for market share. U.S. giant Gopuff is also actively expanding its presence in the region through acquisitions.