U.S. startup GoPuff in talks to acquire UK’s Fancy

Fancy was launched last year, and operates in four cities across the U.K.

U.S.-based startup, GoPuff, which operates its own “microfulfillment” network and promises to deliver items such as OTC medicines, baby food and alcohol in 30 minutes or less, is in talks to acquire the U.K.’s Fancy Delivery, TechCrunch has learned.

Terms of the acquisition are still being sorted out, according to sources, and the deal has yet to get over. However, an announcement is expected in the next few weeks. While GoPuff declined to comment, Fancy’s founders couldn’t be reached, either.

Fancy was launched last year, and operates in four cities across the U.K. It is a graduate of the Silicon Valley accelerator Y Combinator. It has a strikingly similar model to its potential buyer, and described as a mini goPuff. The two companies are fully integrated vertically, meaning they each contract their own fleet of drivers and operate their own microfulfillment centres designed specifically for online ordering and hyperlocal delivery.

The potential acquisition of Fancy looks to be a good fit strategically, which would signal goPuff’s intent to expand to the U.K. via a nascent local firm rather than starting from the scratch. Fancy will continue to operate under the Fancy brand and that goPuff intends to invest in hiring and opening additional fulfilment centres.

GoPuff was recently valued at $3.9 billion and has raised $1.35 billion in funding till date. Its backers include Accel, D1 Capital Partners, Luxor Capital and SoftBank Vision Fund. It has already a strong presence in the U.S., with operations in 500 U.S. cities. It most recent acquisition includes alcohol-focussed BevMo.

Meanwhile, goPuff’s vertically integrated model has inspired a slew of startups in Europe. They include Berlin’s much-hyped Gorillas and London’s Dija and Weezy, and France’s Cajoo, all of which claim to focus more on fresh food and groceries. It also includes Zapp, which is still in stealth and more focused on a higher-margin convenience store offering.