The founder of Getir, a popular grocery delivery app, is facing challenges from investors regarding a rescue plan to keep the company afloat. Sources have revealed that Getir is dangerously close to running out of cash, and shareholders are demanding changes to the company’s governance and leadership in order to secure further funding. These changes, previously agreed upon, include the founder Nazim Salur stepping back from his role and the reinstatement of Derya Erdemli as the chief strategy officer.
If these changes are not implemented, a tranche of funding worth tens of millions of pounds, necessary for restructuring the company’s Turkish business, will not be released. This could result in Getir running out of funding as soon as this month, leaving the company in a precarious financial situation. It was previously reported that the grocery delivery app, once valued at £10bn, has confirmed its exit from the UK while still owing payments to Tottenham Hotspur Football Club.
Mubadala, the Abu Dhabi state investment fund, and G Squared have already provided tens of millions of pounds to aid in Getir’s withdrawal from the UK, Germany, and the Netherlands. However, the remaining funding is contingent upon Mr. Salur convening a shareholder meeting to implement the necessary leadership changes. Sources have expressed concern that this impasse could jeopardize Getir’s ability to continue operating.
Amidst its financial struggles, Getir has been forced to retrench back to its home market, resulting in the loss of thousands of jobs. Its exit from the UK alone has put approximately 1,500 jobs at risk. This decline highlights the downward trend in the valuations of once highly-valued technology companies, such as Getir, which were seen as the future leaders of the food retail industry. Many of its competitors have already gone bankrupt, while others have been absorbed in a wave of consolidation.
In 2022, Getir acquired Gorillas in a $1.2bn stock-based deal. Both Getir and Mubadala declined to comment on the current situation. The fate of Getir and its employees remains uncertain as the company navigates through its financial challenges.
