With the global pandemic driving a surge in demand for instant delivery services, investors initially turned their attention to companies like Evermile, Vendease, Liefergrün, and more. However, the landscape has shifted recently, and many of these companies are now facing acquisitions, funding challenges to ensure survival or reductions in their valuations.
Getir, the Turkish rapid grocery delivery company that pioneered in the space has been in trouble waters too. Now reportedly, it has snapped a whopping $500 million in a funding round, at a valuation of $2.5 billion. This is a significant drop from its previous valuation of $11.8 billion back in 2022 when it raised $800 million. Following the raise, after a few months, Getira also acquired its Berlin-based rival Gorillas.
The latest round was reportedly led by existing investor Mubadala (who backed Precision Neuroscience), with participation from G Squared and recent Sequoia departee Michael Moritz, alongside Revo Capital, who contributed to the company’s Series A round.
The latest downround came soon after the company’s exit from the Spanish, Italian, Portuguese, and French markets. This strategic move is aimed at concentrating its resources and curbing expenditure. Currently, Getir operates in five markets: Turkey, the UK, Germany, the Netherlands, and the US.
What led to dropped valuation?
Founded in 2015 by Nazım Salur, the Turkish company delivers groceries and corner shop items to customers within 10 minutes of placing the orders. The platform delivers a selection of 1,500 everyday items to its customers in minutes, seven days a week, day and night. Unlike other companies, Getir offers its employees a range of benefits, including full-time positions and employee status to drivers and packers.
While the demand for grocery delivery boomed during the Covid-19 pandemic, it dropped after lockdowns ended and regular operations debuted across industries such as shops, restaurants, and others. Detailing on instant delivery series, they charge a few extra money for their swift deliveries, and this became a point of concern adding more burden to the already skyrocketing cost of living. Eventually, the demand for rapid grocery delivery came down with time.
Getir has been struggling with cashflow issues for months and sent employees door-to-door with goodie bags to try and boost sales. As its approach ended up in vain, the company shut down its services in five countries and also announced 2,500 job cuts across these regions.