Delivery program DoorDash has reached an agreement to acquire the Finnish delivery operator Wolt in a transaction with full stock worth € 7 billion.
Wolt in Helsinki, which has more than 4,000 employees, operates in 23 European markets, including Germany, where DoorDash was eager to gain a foothold in the highly competitive market for food and grocery delivery.
The application has more than 2.5 million active users, according to an investor offer published on Tuesday. That said, Wolt’s gross order volume – the total value of all transactions – was more than $ 2.5 billion, on an annual basis.
Miki Kuusi, Wolt’s founder and CEO, will run DoorDash International, a new division for its operations outside the US. He will report to DoorDash CEO Tony Xu, according to a release announcing the deal.
Other “key executives” will also join DoorDash, the company said. The deal is expected to close in the first half of 2022, subject to regulatory approval.
Wolt, founded in 2014, raised more than $ 800 million as a private company, including a $ 530 million round of financing led by Iconiq Capital in January.
The company’s revenue tripled to $ 345 million last year and it recorded a net loss of $ 45 million, he said at the time of the financing.
Last year, Wolt was second among the fastest growing companies in Europe in a score published by the Financial Times.
Xu said in a statement: “By joining forces, we believe we will accelerate our product development, bring greater focus to each of our markets, and the value we place on consumers, retailers, as well as Dashers and couriers across the world offers will improve. ”
News of the acquisition came when DoorDash reported third-quarter earnings.
It beat analysts’ expectations of revenue, gross order volume and adjusted earnings before interest, tax, depreciation and amortization, but dropped to a net loss of $ 101 million – more than double the loss compared to the same period last year. The company said it was due to the cost of last year’s initial public offering, and share-based compensation.
It predicted order volumes would remain constant for the rest of the year, saying custom ebitda could drop anywhere between $ 0 and $ 100 million. Like other gig-economy companies, DoorDash faces challenges in attracting workers.
The company said it had 3 million dashers, or couriers, on its platform in this year’s second quarter, but did not provide a number for the third quarter.