DoorDash talks to invest in grocery startup Gorillas

The San Francisco-based firm was discussing investing $400 million in a deal that will have valued the startup at $2.5 billion, the particular person mentioned. The information was reported earlier by The Telegraph. A letter of intent had been signed by each events however the two sides couldn’t agree on a method. DoorDash needed Gorillas to sluggish its growth within the U.S. and deal with decreasing its losses on the European operation, the particular person mentioned, asking to not be recognized discussing non-public info.

Gorillas is without doubt one of the most high-profile startups within the enterprise of delivering groceries and different items inside minutes, an trade that has boomed throughout the pandemic lockdowns and attracted billions of {dollars} from enterprise capitalists. The corporate has been making an attempt to boost new funds because it expands.

Based final 12 months, Gorillas raised about $300 million in its most up-to-date funding spherical in March from traders together with DST International, Coatue Administration and Tencent Holdings Ltd., boosting its valuation to only over $1 billion, in response to knowledge from Pitchbook.

San Francisco-based DoorDash is increasing internationally and has seemed into the opportunity of acquisitions in Europe, Bloomberg News has reported. DoorDash declined to touch upon the talks with Gorillas. A consultant for Gorillas mentioned the corporate usually doesn’t remark “on speculations about financing rounds.”