Equipped with a $1B war chest, Gopuff doubles down on the competitive European delivery market with Dija acquisition

US-based Gopuff, an on-demand delivery service for daily essentials. Last month, the company raised $1B in new funding at a $15B valuation. The round was participated by prolific tech investors, including new investors Blackstone’s Horizon platform, Guggenheim Investments, Hedosophia, MSD Partners, and Adage Capital, along with existing investors Fidelity Management and Research Company, Softbank Vision Fund 1, Atreides Management, and Eldridge. 

According to the company, one of the goals behind raising this fund was deeper expansion into the UK and across Europe.

Gopuff acquires Dija

Today, the company has announced that it has signed a definitive agreement to acquire London-based Dija, a startup that delivers groceries to customers’ doors within minutes. The transaction is expected to close within 30 days

Gopuff recently acquired UK-based Fancy – an on-demand delivery provider. Now, after closing the current deal, Gopuff expects to accelerate its global expansion with an immediate presence in France and Spain and providing further densification in the UK.

Speaking on the development, Daniel Folkman, Gopuff SVP of Business, says, “Combining Dija’s team of industry veterans, extensive infrastructure, and local expertise will complement Gopuff’s proprietary technology and unique customer experience, and advance our ability to scale rapidly as we create a leading platform in Europe. Together, we will continue to innovate and define the Instant Needs economy across Europe and bring the category to more customers in the region.”

“Groceries delivered in 10 minutes”

Founded in 2020 by former Deliveroo executives Alberto Menolascina and Yusuf Saban, Dija is a startup that delivers groceries to customers’ doors in under 10 minutes. Customers can buy branded food and non-perishable items, as well as fresh produce with a guarantee of both speed and reliability. 

To guarantee speed, Dija’s hubs are located within densely populated urban areas, right on customers’ doorstep, enabling them to deliver within 10 minutes. And to guarantee the reliability, each hub carries more than 2,000 products sold at recommended retail prices.

Currently, Dija operates dozens of micro-fulfilment centres across major metropolitan areas, including London, Paris, Madrid, Valencia, and more.

Alberto Menolascina, co-founder & CEO of Dija, says, “For the last eight years, Gopuff has been the market and category leader in the US. Together, combined with our team’s extensive experience of building and scaling food and delivery companies across Europe, we are perfectly positioned to lead the everyday essentials space in Europe and beyond.”

Aim of this acquisition

With the acquisitions of Dija and Fancy, Gopuff plans to operate in three European countries with about 40 micro-fulfilment centres and 200 employees in the region, with additional plans for continued, rapid expansion.

Dija, which has a vertically integrated model similar to Gopuff, will continue to operate under the Dija name in the near term as the two companies create an integration plan to enhance the customer experience across Europe and the UK.

Gopuff aims to continue expanding its services globally and invest in the UK and Europe. And to do that, the company has appointed talents to lead its strategic efforts internationally. This includes the appointments of Steven Harman, former Revolut Chief Operating Officer, as Senior Vice President of European Operations; and Alex Ootes, former VP of EU Category Management and Expansion at Amazon, as Vice President of European Category Management & Product.

“Daily essentials, delivered in minutes”

Gopuff was founded in 2013 by co-founders and co-CEOs Rafael Ilishayev and Yakir Gola. It is the go-to solution for immediate everyday needs, fulfilling customer orders of cleaning and home products, over-the-counter medications, baby and pet products, food and drinks, and in some markets, alcohol and fresh-made food – in just minutes. 

With micro-fulfilment centres in every market it serves, the company delivers products for a flat $1.95 delivery charge. Also, it is open 24/7 in many markets and delivers late night as well. Currently, Gopuff operates more than 450 sites across North America and Europe, including nearly 300 micro-fulfilment centres and over 185+ recently acquired BevMo! and Liquor Barn locations.