Getir Acquires Grocery App Gorillas for $1.2B — Retail Bum

Turkish delivery service Getir has acquired German grocery delivery service Gorillas in a deal that puts their combined valuation at $10 billion.

The acquisition cost Getir $1.2 billion, significantly lower than the $3 billion price point that was pitched in September last year.

Gorillas, which was founded in 2020, tripled its business last year on the heels of a $907 million investment round. However, the company has struggled to turn a profit amidst uncertain economic conditions. In June this year, the company had said it expected to become profitable in the next 12 months as it took steps to cut its overhead costs and shift its focus from expansion to becoming profitable, Reuters reported.

The acquisition is a turnkey moment for Getir, which counted Gorillas as one of its top competitors. Still, it is a challenging period of time for Getir as the company is looking to raise funding next year and will be cutting its valuation by nearly 25%.

Earlier this year, Getir saw a $768 million investment from Abu Dhabi’s state investor Mubadala. It currently offers services in Turkey, the U.S., and several European countries, including the U.K., Germany, France, Italy, Spain, the Netherlands and Portugal.

Following the completion of the deal, the combined entity will likely cut staff in cities where both services are currently present.

Originally published at https://retailbum.com on December 9, 2022.