DoorDash buys Finnish delivery app Wolt in €7bn all-stock deal

Supply app DoorDash has reached a deal to accumulate Finnish supply operator Wolt in an all-stock deal price €7bn.

Helsinki-based Wolt, which has greater than 4,000 staff, operates in 23 European markets, together with Germany, the place DoorDash has been keen to realize a foothold within the extremely aggressive marketplace for meals and grocery supply.

The app has greater than 2.5m lively customers, based on an investor presentation printed on Tuesday. It mentioned Wolt’s gross order quantity — the entire worth of all transactions — was greater than $2.5bn, on an annualised foundation.

Miki Kuusi, Wolt’s founder and chief government, will run DoorDash Worldwide, a brand new division for its operations outdoors the US. He’ll report back to Tony Xu, DoorDash chief government, based on a launch asserting the deal.

Different “key executives” would even be becoming a member of DoorDash, the corporate mentioned. The deal is anticipated to shut within the first half of 2022, topic to regulatory approval.

Wolt, based in 2014, had raised greater than $800m as a non-public firm, together with a $530m spherical of financing in January led by Iconiq Capital.

The corporate’s revenues tripled to $345m final 12 months and it recorded a internet lack of $45m, it mentioned on the time of the financing.

Final 12 months Wolt was second among the many quickest rising firms in Europe in a tally published by the Financial Times.

Xu mentioned in an announcement: “By becoming a member of forces, we consider we’ll speed up our product growth, convey larger focus to every of our markets, and enhance the worth we offer to shoppers, retailers, in addition to Dashers and couriers all over the world.”

Information of the acquisition got here as DoorDash reported third-quarter earnings.

It beat analysts’ expectations on income, gross order quantity and adjusted earnings earlier than curiosity, taxes, depreciation and amortisation, however slumped to a $101m internet loss — greater than double its loss in contrast with the identical interval final 12 months. The corporate mentioned it was all the way down to prices of final 12 months’s preliminary public providing, and stock-based remuneration.

It forecast order volumes to stay fixed for the rest of the 12 months, and mentioned adjusted ebitda may fall wherever between $0 and $100m. Like different gig economic system firms, DoorDash faces challenges in attracting employees.

The corporate mentioned it had 3m “dashers”, or couriers, on its platform on this 12 months’s second quarter, however didn’t give a quantity for the third quarter.

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