U.K. Delivery Startup Dija Said to Explore Sale Amid Competition

Ivan Levingston and Ercan Ersoy, Bloomberg News

(Bloomberg) -- U.K. grocery startup Dija is exploring options including a sale or a merger with a rival just months after officially launching in London, according to people familiar with the matter.

Dija, founded by former employees of Deliveroo Plc in 2020, is among a raft of new companies in Europe that promise to deliver household goods and convenience items to customers within 10 minutes.

Dija is also exploring raising a new round of funding, a separate person familiar with the company’s plans said. A representative for Dija declined to comment.

The company raised $20 million in a round led by Blossom Capital, with participation from Index Ventures and Creandum. Part of the company’s financing includes a $7 million convertible loan from Creandum, according to company filings.

The startup operates in London, and has rapidly expanded to Paris and Madrid, according to its website.

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Rivals have also explored takeovers in the increasingly competitive market. Amazon.com Inc. and Gopuff -- a U.S. delivery app backed by SoftBank Group Corp. -- explored takeover bids for German delivery startup Flink, Bloomberg News reported.

Venture capitalists made 66 deals in the sector valued at a combined $7.4 billion in the first quarter, according to research firm PitchBook.