Investors of Getir, a popular grocery delivery app, have decided to inject additional funds into the company in order to facilitate its exit from the UK and Europe. According to sources familiar with the matter, leading shareholders such as Mubadala, Sequoia Capital, and Tiger Global have agreed to provide tens of millions of pounds to support the company’s restructuring plan.
This new funding will add to the already impressive $2 billion that Getir has raised, making it one of the most well-funded fast-delivery platforms in the world. However, the company’s decision to withdraw from the UK, Germany, and the Netherlands could potentially put thousands of jobs at risk.
An official announcement from Getir, which means “to bring” in Turkish, is expected soon, marking the end of its ambitious expansion into Europe. Discussions are still ongoing regarding the fate of its Fresh Direct arm in the US, which was only acquired a few months ago.
Following the restructuring, Getir will focus on its domestic Turkish market and its food delivery operations there. The new funding from shareholders will cover the costs of exiting the European markets and provide additional capital for investment in the Turkish business.
Although an official announcement could come this week, sources close to the company have stated that the exact timing is yet to be finalized. The valuation at which the new funds will be injected remains unclear at this time.
The company’s withdrawal from the UK is estimated to put 1,500 jobs at risk, as reported by Sky News last week. Just a couple of years ago, Getir was valued at almost $12 billion, thanks to the high demand for its services. However, with the recent struggles of the company and its competitors such as GoPuff, DoorDash, and Deliveroo, its valuation has significantly decreased.
Founded in 2015, Getir was one of the most successful start-ups during the pandemic, with investors pouring billions of dollars into the company. In early 2022, it raised over $750 million in a funding round, but its valuation has since dropped. Last September, Getir also announced a significant reduction in its workforce, resulting in the loss of approximately 2,500 jobs, which accounted for 10% of its global employee base.
The company has already pulled out of several countries, including Italy and Spain, in an attempt to minimize losses. This trend highlights the declining valuations of technology companies that were once hailed as the new leaders in the food retailing industry.
Despite the recent developments, Getir remains a valuable partner for the Premier League’s Tottenham Hotspur, with a multi-million pound commercial partnership. However, the company has stated that it does not comment on market rumors. It has also denied any possibility of insolvency for the group or its subsidiaries.
In light of these changes, Getir has enlisted the help of restructuring advisors, while Mubadala, one of its largest shareholders, is being advised by AlixPartners. The company has also acquired Gorillas in a $1.2 billion stock-based deal, which was finalized in December 2022. This acquisition is a part of the ongoing consolidation in the industry, with many competitors going bankrupt or being acquired by larger companies.
