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US Delivery Company goPuff to Likely Acquire UK Startup Fancy

The US-based startup GoPuff, which operates its own micro-fulfillment network and promises to deliver items such as baby food, over-the-counter medicine, and alcohol in 30 minutes or less, is in talks with UK’s Fancy Delivery to acquire it.

As per sources, the terms of the acquisition are still being chalked down, and the deal has yet to be finalized. However, an announcement is likely to come in the next few weeks.

Launched in 2020, Fancy is presently operational in four cities in the UK and is a graduate of the Silicon Valley accelerator Y Combinator. Fancy has a similar model to its potential buyer, that some even describe it as a mini goPuff. The two companies are fully vertically integrated, meaning they each contract their own fleet of drivers and operate their own micro fulfillment centers, sometimes dubbed dark stores, designed specifically for online ordering and hyperlocal delivery.

The potential acquisition of Fancy seems to be a great move by goPuff. This acquisition signals at goPuff’s intention to expand in the UK by purchasing a local player rather than starting itself entirely from scratch. As per sources, it is revealed that Fancy will continue to operate under the Fancy brand and that goPuff just intends to invest in its growth, including hiring and opening additional fulfillment centers. The acquisition is likely an all-stock deal.

GoPuff was recently valued at USD 3.9 billion. The company has raised USD 1.35 billion in funding to-date (the participants include Accel, D1 Capital Partners, Luxor Capital, and SoftBank Vision Fund). GoPuff already operates in 500 US cities and does not shy away in making new acquisitions and it, most recently also purchased alcohol-focussed BevMo.

Europe is also witnessing a slew of startups inspired by goPuff’s vertically integrated model sprouting up. This even includes Berlin’s much-hyped Gorillas and London’s Dija and Weezy, and France’s Cajoo, all of which claim to focus more on fresh food and groceries, where margins are arguably tighter. There are also some companies like Zapp, which is highly focused on a higher-margin convenience store offering.

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