Dunnes Stores nears deal to take over Buymie service

DUNNES Stores has declined to commit to retaining the more than 300 employees that work for Buymie, the on-demand grocery delivery service, as it nears a deal to buy the company.

The Business Post reported that Dunnes was close to acquiring the start-up as part of a deal that will see most investors walking away with nothing.

Buymie was founded by CEO Devan Hughes, Gabor Krasznai and Art Sokhikyan in 2015.

The start-up was located in Tallaght Village before relocating it’s Ireland office to Dublin 2.

According to the Business Post, Hughes and Sokhikyan will be among the hardest hit of the investors, who will have to take a significant financial hit arising from the sale of Buymie in the hope that employees at the company would be protected.

However, Dunnes has decline to offer any commitment if it will retain the 300 employees at the company, according to sources with knowledge of the negotiations.

Buymie was ranked as the fastest-growing Irish tech company in Deloitte’s Fast 50 awards last year, having recorded growth of more than 6,900 per cent in the past four years.

The company has existing partnerships with Dunnes and other key retailers Lidl and Woodies, and is considered a well-run business.

However, difficulties arose late last year after it failed to secure additional funding.

Having raised around €18m to date from backers, Buymie hired Goodbody stockbrokers to help it raise and additional €10-20m but fundraising efforts ran into difficulty as a result of the weakening economic environment, rising intertest rates and the collapse in sentiment towards the tech sector.

Dunnes emerged as an interested buyer and sources told the Business Post that the retailer initially agreed to acquire Buymie for a sum on the region of €15m – however Dunnes subsequently lowered its offer several times over the following weeks to a much-reduced figure.

Sources say Buymie is unlikely to find an alternative buyer.