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A UK grocery start-up based simply eight months in the past has already been snapped up by a much bigger U.S. rival

A bag of groceries with the emblem of American on-demand supply start-up Gopuff.


LONDON — American grocery supply start-up Gopuff on Thursday agreed to purchase Dija, a British competitor based simply eight months in the past.

Gopuff mentioned the transfer would assist it increase into Europe, by establishing a bigger presence within the U.Ok. and coming into France and Spain.

The corporate acquired Fancy, the same start-up based mostly in Britain, simply three months in the past.

Based in December by former workers of U.Ok. meals supply agency Deliveroo, Dija is considered one of a brand new crop of start-ups promising to ship groceries to folks’s doorways in a matter of minutes.

These corporations have grown quickly over the previous yr, aided by billions of {dollars} in enterprise capital. Dija has raised $20 million in seed cash from Index Ventures, Blossom Capital and Creandum.

Different rivals embrace Getir, a Turkish firm not too long ago valued at $7.5 billion, German companies Gorillas and Flink, and British start-ups Zapp and Weezy.

Grocery supply start-ups have flourished within the Covid-19 pandemic, as folks took to on-line platforms to order their necessities somewhat than shops. A lot of European meals supply companies, together with Supply Hero and Deliveroo, have made huge investments in grocery procuring.

Dija and its rivals use what’s often known as “darkish shops,” small warehouses the place couriers go to gather and ship gadgets ordered by prospects. The businesses purchase merchandise wholesale and promote them by means of an app, typically at a premium to grocery store costs.

Trade consultants have questioned the sustainability of the upstarts’ enterprise fashions. The market is closely crowded and requires heaps of money to achieve scale.

“The amount of cash that is being put in opposition to this chance is grossly disproportionate to the dimensions of the chance,” Luke Jensen, CEO of Ocado Options, a unit of U.Ok. grocery tech pioneer Ocado, informed CNBC earlier this yr.

“I believe there’ll inevitably be lots of consolidation amongst these gamers,” he added.

It seems to be just like the business is already starting to consolidate. Getir not too long ago acquired a competitor in southern Europe referred to as BLOK. And Flink reportedly attracted takeover curiosity from Amazon and Gopuff.

Gopuff’s acquisition of Dija is predicted to finish inside 30 days, the U.S. firm mentioned. The monetary phrases weren’t disclosed. It is an unusually fast exit for a venture-backed start-up.

The deal is predicted to provide Gopuff a a lot bigger attain in Europe, working about 40 darkish shops and using 200 employees.

“Combining Dija’s workforce of business veterans, intensive infrastructure, and native experience will complement Gopuff’s proprietary expertise and distinctive buyer expertise, and advance our capability to scale quickly as we create a number one platform in Europe,” mentioned Daniel Folkman, Gopuff’s senior vp of enterprise.

A Dija spokesperson informed CNBC there can be no layoffs on the firm because of the deal. “Everybody will likely be holding their jobs,” they mentioned.

Gopuff, which is backed by SoftBank, final month raised $1 billion in a financing spherical valuing the Philadelphia-based firm at $15 billion.


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