Instant-delivery startup Gorillas is on the hunt for a deal. It has been exploring everything from a merger with Berlin-based rival Flink to raising money from existing investors, according to four people familiar with the situation. Investors are still proposing various options and no term sheets have been signed, one of the people said.
Gorillas is far from alone. Numerous other instant-delivery startups, which last year raised billions of investor dollars to finance a rapid expansion across the U.S., Europe and Latin America, are confronting a bleak fundraising environment. Yet they’re continuing to burn through cash despite their efforts to cut costs, raising a question of how long they can keep operating.
With prospects for hefty venture fundraisings looking grim, some companies have been looking to sell themselves but hitting dead ends for months, multiple executives and investors told The Information. Some startups have also been turning to their existing investors in an attempt to extend their runway.