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

A bag of groceries with the brand 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.Okay. and coming into France and Spain.

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

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

These firms have grown quickly over the previous 12 months, aided by billions of {dollars} in enterprise capital. Dija has raised $20 million in seed cash from Index Ventures, Blossom Capital and Creandum.

Different opponents embody Getir, a Turkish firm just lately valued at $7.5 billion, German corporations Gorillas and Flink, and British start-ups Zapp and Weezy.

Grocery supply start-ups have flourished within the Covid-19 pandemic, as individuals took to on-line platforms to order their necessities somewhat than shops. Quite a lot of European meals supply corporations, together with Supply Hero and Deliveroo, have made massive 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 objects ordered by clients. The businesses purchase merchandise wholesale and promote them via an app, usually 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 realize scale.

“The sum of money 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.Okay. grocery tech pioneer Ocado, advised CNBC earlier this 12 months.

“I think there’ll inevitably be a whole lot of consolidation amongst these gamers,” he added.

It appears just like the business is already starting to consolidate. Getir just lately 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 anticipated 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 anticipated to provide Gopuff a a lot bigger attain in Europe, working about 40 darkish shops and using 200 workers.

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

A Dija spokesperson advised CNBC there could be no layoffs on the firm on account of the deal. “Everybody can be maintaining 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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