DoorDash Supported instant grocery delivery startup Flink has raised $ 750 million in an investor round to expand its presence in a highly competitive food delivery space.
German start-up Flink is trying to find its place in a crowded space dominated by several food delivery startups, including Gorillas, Getir, and Weezy. The Covid-19 pandemic has been the catalyst for their growth as people have become dependent on these delivery platforms to meet their needs during shutdowns.
What you might not know about German startup Flink
German food delivery startup Flink promises customers in its European markets groceries within 10 minutes. US tech firm DoorDash led its Series B round in September and included investors such as Mubadala Capital, which is part of the Abu Dhabi group. sovereign fund. That round valued the private company at $ 2.1 billion, which has now edged up to $ 2.86 billion with the latest funding.
The latest influx of cash will be used to expand its operations. The Berlin-based startup currently has more than 140 delivery centers in more than 60 cities, serving up to 10 million customers. Germany and the Netherlands are its biggest markets. The plan is to grow Flink’s footprint, both organically and potentially, by nabbing rivals.
“We’re just getting started, as we get questions every day from people asking when they can reach us,” said founder Oliver Merkel. With the new round of investment, Flink will have enough capital to grow and beat its rivals in the game. The previous fundraiser raised $ 240 million in June from investors including Prosus NV, Bond and Mubadala Capital. It is also backed by Cherry Ventures, Northzone and Target Global.
Flink’s competitors, Gorillas Technologies GmbH, raised $ 1 billion in October from investors led by Delivery Hero SE. Incidentally, DoorDash was also in talks with Gorillas for a deal, but the talks collapsed. Amazon and Gopuff, US delivery app supported by SoftBank, both were interested in investing in Flink.
What’s interesting is that Flink launched just over a year ago and has become fully operational within the last 7 months. Interestingly, it caught the attention of these big investors in such a short time. CEO and co-founder Oliver Merkel thinks it’s because all of the founding members have a lot of experience in the field. Merkel spent years as a management consultant at Bain, working in grocery and retail; co-founders Julian Dames and Christoph Cordes are Rocket Internet alumni and also founded food delivery startup Foodora and furniture e-commerce company Fashion for Home (acquired by Home24, where Cordes became CEO), respectively.
DoorDash CEO Tony Xu said Bloomberg that his company was looking for business opportunities with the startup Flink beyond its financial participation. “We tend not to invest. In general, we usually do this if we think there might be a business relationship or something strategic that is perhaps cemented or solidified by an investment, ”said Tony Xu, CEO of DoorDash, in an interview in margin of slush 2021 technical conference in Helsinki.
This is the San Francisco-based company’s attempt to gain a foothold in Europe. Previously, the company announced a € 7 billion ($ 7.9 billion) deal to buy Wolt in Finland. The deal is not yet concluded and it is expected that all documents will be completed by the second half of 2022.
DoorDash struck deals last year with American chains, including Meijer and Wegmans, to offer grocery delivery through its app for the first time.