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Gorillas on track to raise $250m at cut valuation: report

Gorillas is set to raise $250 million in funding from existing investors at a reduced valuation, Business Insider reported Friday. Two people with knowledge of the negotiations also confirmed to Sifted that it had terminated its work with JP Morgan, the investment bank that the scaling contracted to help find new sources of funding or find a buyer.

The fast food company has been trying for months to raise funds in order to extend its track because the fall in the public markets makes private investors more cautious, especially in loss-making companies.

At the end of May, Gorillas cut 320 jobs and this month firm a rider platform, Street Fleet, which provided riders to Gorillas and Delivery Hero.

Gorillas rose to fame during the European lockdown in 2020 and achieved unicorn status just nine months after launch – at the time the fastest company to achieve this feat. JTo date, it has raised $1.3 billion in funding from big names like Tencent, DST Global, Coatue, and Delivery Hero.

But market jitters and inflation have proven difficult for a business that needs so much cash to operate, forcing the company to move away from an expansion strategy (it recently closed its market operations in Italy, Spain, Denmark and Belgium) to focus on profitability.

In response, Gorillas said, “Please understand that as a general rule we never comment on market rumours. Therefore, we will not comment on the issue you have raised.

At the end of May, a source said that Sifted Gorillas were burning €60m a month and only had €300m on hand. left at the bank. The company last raised funds from $1 billion at a $3 billion valuation in October of last year.

Miriam Partington is Sifted’s DACH correspondent. It also covers the future of work, co-authors Sifted Startup Life Newsletter and tweets from @mparts_