Grocery delivery startup Fancy has been acquired by Gopuff, a Pennsylvania-based unicorn taking its “first step” in international expansion.

The US giant, valued at $8.9 billion, plans to grow Fancy’s team while introducing new technologies to “improve the customer experience.”

Gopuff executives reportedly decided on the acquisition after noting both companies had a similar business model.

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Fancy currently delivers to Birmingham, Bristol, Leeds, Manchester and Newcastle, claiming to do so at “supermarket prices” within 30 minutes.

The company has not given a date for its upcoming launches in London, Nottingham and Sheffield.

“Acquiring Fancy is an important first step as we accelerate expansion in the UK and Europe and quickly accelerate our investment in the international market,” Gopuff senior vice president Daniel Folkman said.

Fancy chief executive Arnie Englander said Gopuff would bring “operational capabilities, [a] deep bench of talented personnel, and infrastructure” to the startup.

The acquisition follows a rapid expansion of grocery platforms during the Covid-19 pandemic.

Last month, on-demand grocery service Beelivery secured a £4.5 million investment to fuel its international growth.