Dija holds buyout talks with grocery goliaths

Finance

Grocery startup Dija is reportedly looking for a buyer after struggling to raise fresh funds from investors.

Two sources told Insider that the London-based business, which claims to drop off groceries in under 10 minutes, had discussed a deal with Pennsylvania delivery giant Gopuff.

A third source said it had also talked to German rival Gorillas, but indicated a buyout was unlikely.

One Dija insider suggested the company needed between $150 to $200 million to stay afloat, significantly more than its $20 million funding round in December.

READ MOREBig 4’s convenience stores face grocery startup threat

It has faced stiff competition from domestic rivals such as Weezy and Zapp, businesses expanding from abroad like Turkish unicorn Getir, and supermarket services like Tesco Whoosh.

Both potential buyers already have a foothold in the UK, with Gopuff buying grocery startup Fancy in May for an undisclosed sum.

Vice president Daniel Folkman said the acquisition was an “important first step” in the US company’s expansion across Europe.

Gorillas launched in London and Manchester in March, moving into Nottingham and Southampton earlier this month.

Its next targets are thought to be Bristol and Cambridge.

Research company IGD believes the UK’s “quick commerce” market is worth £1.4 billion, and could reach £3.3 billion in the future.

Finance

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