German rapid grocery startup Gorillas is working on a deal to acquire the French delivery firm Frichti for undisclosed terms, Bloomberg reported on Monday (Jan. 24).
The combined entity would grow its footprint in the competitive food delivery space and give it the second-largest market share, 17.1%, for same-day grocery delivery in Paris, just ahead of Carrefour SA and behind leader Casino Guichard-Perrachon, according to Nielsen data.
The deal is still in the works, and company leaders from both Gorillas and Frichti declined to offer specifics of the negotiations, Bloomberg reported.
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Gorillas was drawn to Frichti in part due to its expertise in creating private label brands and pre-made meals, , Gorillas CEO, told Bloomberg, adding that scaling operations where geographies intersect is an initial step.
also said that quick commerce is a first step before exploring additional models.
If the deal closes, Gorillas will have access to Frichti’s customer base, which tops 450,000, as well as its 25 micro-fulfillment centers across eight cities in France and Belgium. The combined company would be up against French rivals that include Cajoo, Gopuff and Getir.
Read more: Competition for Ultra-Fast Delivery Intensifies in France
Headquartered in Paris and founded in 2015, Frichti initially offered delivery of ready-to-eat meals and three years later grew its services to include groceries. Under the deal, Frichti will keep its own branding, Frichti co-CEO Julia Bijaoui told Bloomberg.
In 2021, the startup launched a line of 120 products under the Frichti Everyday label, including beer, biscuits, ham, and eggs, which usually bring in more profits, Bijaoui also said. The additional product line also helps balance the flow of orders to keep the company busy morning through night.
Since its launch, Frichti raised roughly €100 million ($113 million) to date, Bijaoui said. Backers of the company include Alven Capital, Felix Capital and Verlinvest.
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