German grocery delivery startup Flink is reportedly receiving another 100 million euros ($106.7 million) from investors to extend its runway and try to outlast its competitors.
The startup is also in discussions with rival food delivery companies about a potential merger, Bloomberg reported Wednesday (April 17), citing unnamed sources.
Flink did not immediately reply to PYMNTS’ request for comment.
These moves by Flink come at a time when the grocery delivery sector is confronting higher costs and lower demand, according to the report.
Only a few rapid delivery startups remain active in Europe after they proliferated during the pandemic, the report said. Some have struggled with low margins, high acquisition costs and competitors.
Flink had a pre-money valuation of $2.1 billion when it raised $750 million in a Series B funding round in December 2021. At that time, the company aimed to grow its presence by branching out and acquiring competitors.
In May 2022, Flink acquired a competitor, Cajoo, in a move that gave it access to the French grocery chain Carrefour and an opportunity to grow in France.
It was reported in May that rival delivery company Getir was in discussions to buy Flink. Getir acquired another German firm, Gorillas, in a $1.2 billion deal in December 2022.
Getir has been working to consolidate its position in the rapid grocery delivery sector, which saw a surge in demand during the pandemic but has since seen a downward shift. It was reported in September that the company has acquired several rivals, including Gorillas, and focused its operations in five countries: Turkey, the United Kingdom, Germany, the Netherlands and the United States.
In another recent move in this space, Getir acquired online grocery company FreshDirect in November 2023.
“This acquisition will lead to significant synergies between Getir and FreshDirect and emphasizes Getir’s strategic ambitions to grow in the United States,” the company said at the time.
In January, Berlin-based company Delivery Hero sold its 4.5% stake in British food ordering platform Deliveroo.
“Following settlement, the company will not hold any remaining shares in Deliveroo,” Delivery Hero said at the time. “The placement underlines Delivery Hero’s commitment to disciplined capital allocation.”
