Gorillas Raises $44M Series A - On-Demand Grocery Delivery

Gorillas, a rapidly growing grocery delivery service that manages its own network of local fulfillment centers, has secured $44 million in Series A funding, building on its initial success in Berlin.

This funding round, which was widely anticipated within the European tech community, was spearheaded by investment firm Coatue, with additional contributions from several other European investors who have chosen to remain unnamed. Daniel Senft and Bennett Siegel from Coatue will be joining Gorillas’ board of directors.

Reports indicate that Accel and Index Ventures also considered investing, but ultimately decided not to participate. Previously, Atlantic Food Labs provided seed funding to Gorillas, estimated to be around €1.2 million.

Established in May by Kağan Sümer and Jörg Kattner, Gorillas currently operates in Berlin and Cologne, offering grocery delivery in an average of just ten minutes. The company distinguishes itself by directly employing its delivery personnel, and focuses on providing customers with quick access to fresh groceries and essential household items at standard retail prices. This approach aims to capture a significant portion of the grocery market that lies outside of traditional weekly shopping trips.

The business model employed by Gorillas has been likened to “dark” convenience stores, drawing a parallel to the “dark kitchens” utilized by Deliveroo and UberEats for delivery-only restaurants. Gorillas, alongside other European companies like Dija (reportedly nearing a substantial funding round of its own) and Weezy, is establishing localized, delivery-focused grocery and convenience stores. These ventures are frequently compared to goPuff in the United States.

According to Gorillas CEO Kağan Sümer, conventional supermarkets, including their delivery services, are structured to prioritize the needs of the supermarket and its supply chain, rather than adapting to consumer demands.

This results in a focus on products with extended shelf lives, even for fresh items, and a system optimized for large, weekly shopping trips. However, this approach often overlooks other consumer needs, such as “emergency” shopping for a missing ingredient or quickly restocking the refrigerator with items based on current cravings.

“The current system excels at catering to bulk purchases,” explains Sümer, “but this leaves approximately one-third of the market without adequate service.”

“For example, if you have pasta but lack the sauce, obtaining that sauce immediately presents a challenge. There is often no convenient solution.”

“Therefore, we questioned what would happen if a company emerged to provide people with the items they require, precisely when they need them. We believed that customers would value this service and shift towards more on-demand grocery purchases.”

With a tagline of “Faster than you,” and a delivery charge of only €1.80, a key question surrounding Gorillas (and similar companies) is whether the underlying economics can be sustainable, particularly as the business expands and if prices are truly maintained at retail levels. Sümer responds, “Our strong relationships with suppliers allow us to achieve healthy margins, enabling us to offer retail pricing.” He adds, “Considering our robust average order sizes and procurement margins, we are confident in building a long-term, sustainable business.”

Sümer states that the average delivery time is 10 minutes. “Our network of strategically located fulfillment centers allows us to efficiently serve customers within a limited delivery radius. We are committed to providing a fast and reliable service with clear delivery time estimates,” the Gorillas CEO elaborates.

Gorillas plans to utilize the new funding to expand its operations throughout Germany and accelerate its rollout across Europe, beginning with Amsterdam. The company will also invest in growing its team in Berlin, with a goal of operating in over 15 cities across Germany and Europe by the end of the second quarter of next year, managing more than 60 fulfillment centers.