(Bloomberg) -- German rapid delivery startup Flink SE has agreed on a deal to buy French competitor Cajoo, a move that would give it access to French grocery chain Carrefour SA and strengthen its position in the competitive market.
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The acquisition will accelerate Flink’s expansion in France, giving it 30 micro-fulfillment centers in the country across nine cities to reach six million consumers, according to a statement Monday. As part of the deal, Carrefour, which has a minority stake in Cajoo, will become a direct shareholder and exclusive partner of Flink.
The deal valued Flink at more than $5 billion, according to a person familiar with the matter who asked for anonymity because the matter is private, adding that Flink’s annual revenue is currently 500 million euros ($521 million). A Flink representative declined to comment.
That announcement confirmed a previous Bloomberg News report, which said the deal would value Cajoo in the double-digit million euro range.
Backed by U.S. food delivery leader DoorDash Inc., Flink -- worth several billion euros in its last funding round -- competes with a spate of rivals to deliver consumers their groceries and produce in minutes in countries including Germany and France.
An acquisition of Cajoo comes at a time investors are decreasingly willing to fund loss-making businesses and provide Flink with a key strategic partner in France.
Carrefour’s partnership with Flink is similar to a deal the company struck with German supermarket chain Rewe.
Cajoo offers rapid grocery delivery in some large cities in France, and has struck a deal with Carrefour and a partnership with Uber Technologies Inc.
In France, Flink competes with the likes of Gopuff and Gorillas Technologies GmbH. It’s not the first step toward consolidation in France, coming after Gorillas acquired French competitor Frichti earlier this year, Bloomberg News reported.
Flink last raised $750 million in December from investors led by DoorDash in a partnership that may also yield commercial cooperation.
(Updates with confirmation from statement, details on deal in fourth paragraph)
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