The Turkish grocery delivery app Getir, which recently acquired Gorillas in a USD 1.2 billion deal, is currently in negotiations to take over its Berlin-based competitor Flink, despite facing financial challenges.
According to reports from Manager Magazin and Handelsblatt, the plan is to consolidate both services under the name Flink in Germany. Major investor Mubadala, an Abu Dhabi sovereign wealth fund, is supporting the acquisition, holding stakes in both Getir and Flink. The combined company is expected to be valued at $10 billion.
Flink's other investor, supermarket chain Rewe, holding 12% of the shares, also supports the deal. Rewe CEO Lionel Souque believes that in the long term, only one provider will survive per country. Therefore, the acquisition of Flink may not only address Getir's financial challenges but also align with a strategy led by key investor Rewe.
Amidst a wave of mergers in the grocery delivery sector, Flink remains one of the few independent firms in Europe. This trend reflects investors' caution towards capital-intensive businesses amid concerns over rising interest rates and economic uncertainties.
Established in Berlin in 2020, Flink aims to achieve profitability for its core German operations by the end of 2023, following EUR 400 million in sales in 2022. The company anticipates profitability for its entire business, including subsidiaries in France and the Netherlands, by the end of 2024.
Negotiations between the two European firms are ongoing, but reaching a deal is uncertain, according to sources familiar with the matter. Both Getir and Flink have declined to comment on the discussions.
