German food delivery group Delivery Hero has invested €200m ($235m) in on-demand delivery start-up Gorillas Technologies during a Series C funding round.
The investment is in line with Delivery Hero’s commitment to expanding its ‘quick commerce’ ecosystem across the globe.
The company now owns a stake of around 8% in Gorillas Technologies.
Founded last year, Gorillas offers quick deliveries of essential grocery products through its network of warehouses in city centres, which have been set up for fast delivery.
The Berlin-based company operates in nine countries, including France, Germany, Italy, the UK and the US.
Delivery Hero CEO and co-founder Niklas Östberg said: “Delivery Hero is on a mission to advance quick commerce globally and we see Gorillas as one of the leaders in Europe and the US.
“The Gorillas team has an exceptional customer focus driving the highest retention rates we have seen in the industry.
“This has enabled them to reach a more than $300m revenue run-rate in only one year with continued double-digit monthly revenue growth.
“We truly believe that investing in innovative q-commerce players will benefit the entire industry and set a new standard for what a great customer experience looks like.”
Gorillas raised almost $1bn at a pre-money valuation of $2.1bn in its latest funding round.
Other contributors to the funding round included Tencent, Coatue, DST and Dragoneer.
Gorillas CEO Kağan Sümer said: “This investment underpins our global ambition and the opportunities the industry holds.
“We are excited about Delivery Hero’s investment as we start the next phase of our development.”
Delivery Hero operates in around 50 countries and owns minority stakes in foodpanda, Just Eat Takeaway, Glovo and Rappi among other food delivery firms.
In August, the company bought a 5% stake in British online food delivery service Deliveroo.