(Bloomberg) -- German food delivery company Delivery Hero SE plans to invest in grocery startup Gorillas Technologies GmbH as part of a $1 billion funding round, according to people familiar with the matter.

The new financing will value Gorillas at about $3 billion after the deal is closed, said the people, who asked not to be identified because the discussions are private. Delivery Hero is set to invest close to $200 million, the people said.

Representatives for Gorillas and Delivery Hero didn’t immediately respond to requests for comment outside of business hours.

Some details of the deal talks were reported earlier by the German publication Manager Magazin. The current size of the round and valuation hasn’t previously been reported. The deal isn’t yet complete and could fall apart.

Gorillas is among a group of rapid grocery delivery services that has gained traction over the past year as people spent more time shopping at home during the coronavirus pandemic. The company sells fresh produce and other items delivered from urban fulfillment centers to customers’ doorsteps within 10 minutes.

The company has raised hundreds of millions from investors including Coatue Management, DST Global, Tencent Holdings Ltd., Atlantic Food Labs and Dragoneer Investment Group. Its last round in March gave Gorillas a valuation of more than $1 billion.

Prospective valuations for Gorillas have ranged widely this year. As of May, it had been seeking funding at a valuation of more than $6 billion. U.S.-based DoorDash Inc. was negotiating an investment this summer that would have valued Gorillas at $2.5 billion. Those talks broke down over disagreements regarding expansion plans, Bloomberg News reported last month.

Earlier on Thursday, Bloomberg News reported that DoorDash will lead an investment into rival startup Flink SE at a $2.1 billion valuation.

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