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Getir’s new chapter: A fresh split and a $250M investment

Turkish-food-delivery-giant-Getir
Getir. Picture credits; Getir

In a dramatic turn of events, Turkish food delivery giant Getir has secured a $250M investment from Abu Dhabi’s Mubadala Investment Co., propelling the company into a new phase of restructuring and strategic focus. This financial boost comes as Getir grapples with the aftermath of its ambitious expansion and subsequent retreat from the European market.

Founded in 2015, Getir has been a trailblazer in the quick commerce sector, raising over $1.8 billion in total funding. The company had previously achieved a significant milestone with a $768M Series E funding round in 2022. Despite these financial victories, Getir’s rapid expansion hit a snag, leading to a strategic withdrawal from Germany in May and subsequently from France, Italy, Spain, and Portugal throughout 2023. The exit from Germany also saw the closure of the Berlin-based grocery delivery service Gorillas, which Getir had acquired for €1.1 billion in December 2022.

Currently, Getir’s operations are concentrated solely in its home market, Turkey. This refocusing is part of a broader restructuring plan that sees the company divided into two separate entities. The decision, approved by shareholders on Sunday, marks a significant shift in Getir’s operational and leadership structure.

The restructuring will see the co-founder and CEO, Nazim Salur, step down, with Batuhan Gultakan, Getir’s head in Turkey, taking over the helm. Salur and his co-founders will retain roles as board members and hold minority stakes in the restructured grocery business. They will also take a controlling stake in a new entity that encompasses Getir’s diverse array of other businesses, including the BiTaksi ride-hailing service, a jobs board, the N11 shopping platform, and the US-based FreshDirect grocery service.

Mubadala, an existing investor, will gain a more substantial foothold in Getir’s core food delivery operations in Turkey. As Hani Barhoush, a Getir board member, remarked, “Mubadala has been a long-term and committed investor in Getir, and this capital injection reflects our strong confidence in the promising future of the company’s core business in Turkey.”

The ownership structure of the new GetirFinance entity highlights the strategic partnership between existing stakeholders. The founders will hold 40 per cent, Mubadala will take 32 per cent, Isbank’s Maxis fund will hold 20 per cent, and Crankstart, Michael Moritz’s investment vehicle, will retain an 8 per cent stake.

This restructuring is not merely a response to internal power struggles but also a strategic manoeuvre to adapt to post-pandemic market conditions. The surge in demand for delivery services during the pandemic has significantly diminished as global restrictions have eased, leading to a pressing need for cost-cutting and operational efficiency within Getir. Earlier reports indicated that investors were pushing for significant changes, including asset sales and market exits, to navigate the shifting landscape.

In September 2023, Getir raised $500M in a funding round, valuing the company at $2.5 billion, a stark contrast to its $11.8 billion valuation just eighteen months earlier. This decline reflects the broader downturn in venture capital markets amid rising interest rates and economic uncertainty.

Getir’s acquisition of FreshDirect in November 2023 marked a strategic move to bolster its presence in the US market. The company assured customers that service quality would remain unchanged and that FreshDirect would leverage Getir’s technology and operational capabilities to enhance its offerings. Conversely, Getir aimed to use FreshDirect’s diverse product range to enrich its own portfolio.

As Getir embarks on this new chapter, the company’s ability to navigate its home market and leverage its varied business interests will be crucial. With substantial investment and a redefined focus, Getir is poised to strengthen its position and potentially reclaim its status as a leader in the fast-evolving world of food delivery and quick commerce.

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