Turkey’s ultrafast grocer Getir denies reports of funding deal that halves valuation

Turkey’s ultrafast grocer Getir denies reports of funding deal that halves valuation
Getir is present in many major cities including London, where it launched in 2021. / @Getir_UK
By bne IntelIiNews April 21, 2023

Turkey's ultrafast groceries delivery company Getir has denied reports of a deal that roughly halves its valuation to $6.5bn .

While the eight-year-old startup stated that it is always in talks with investors for new funding, it added in an April 20 statement cited by Reuters: "Recent rumors claiming that Getir has as of now raised $500 million at a valuation of $6.5 billion are incorrect. If and when we conclude a structured or a priced round, we will share the news with the public."

News website Insider cited industry sources in reporting on April 19 that Getir raised $300mn from Abu Dhabi state fund Mubadala in a deal that would cut the company's valuation almost in half.

In March last year, Getir closed a $768mn funding round led by Mubadala that valued the company at around $12bn.

PYMNTS reported on April 19 that Getir could be seen as joining the ultrafast grocers that are taking a hit from economic challenges racking their quick-commerce industry.

Getir became Turkey’s second tech unicorn (a privately held startup that reaches a valuation of over $1bn) when in March 2021 it raised $300mn of funding in a new financing round that updated its valuation to $2.6bn.

Since then the global ultra-fast groceries deliveries market, with companies basing services on mobile apps, has remained ferociously competitive, with analysts predicting continuing market consolidation given a slew of new market entrants.

Last December, Getir announced the acquisition of German peer Gorillas. Getir did not disclose the financial details of the deal, but Serkan Borancili, founder of Getir, shared a link on Twitter to a Financial Times article, which said that the Istanbul-based company acquired Gorillas for $1.2bn, though Gorillas was valued at $3bn in September 2021. The combined group was said to be valued at $10bn, with Gorillas accounting for 12% of the total.

In November 2021, Getir said it was acquiring UK rival Weezy.

Since 2021, Getir has launched in countries including the UK, the Netherlands, France, Germany, Portugal, Spain, Italy and the US.

In May 2022, a source told Reuters that Getir was set to axe 14% of staff globally due to rising inflation and costs.

In January last year, the City of Amsterdam banned Getir and peers Gorillas and Flink from opening further small distribution centres, known as “dark stores”, in residential areas and nearby shopping centres for one year, citing problems caused by noise and scooter traffic associated with the buildings, as well as objections to the dark windows of the stores.