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Getir's Fresh Chapter: $250M Investment and Strategic Restructuring

Getir secures $250M investment from Mubadala, reshaping its structure and focusing on core operations in Turkey
June 27, 2024

Turkish food delivery giant Getir has announced a $250 million investment from Abu Dhabi's Mubadala Investment Co., marking the beginning of a major restructuring phase for the company. This new financial boost comes as Getir navigates the challenges of a rapid expansion followed by strategic withdrawals from key European markets.

Founded in 2015, Getir has pioneered the quick commerce sector, securing over $1.8 billion in total funding. A notable milestone was reached in 2022 with a $768 million Series E funding round. However, Getir's swift expansion faced hurdles, prompting a retreat from Germany in May and subsequent exits from France, Italy, Spain, and Portugal throughout 2023. This period also saw the closure of the Berlin-based grocery delivery service Gorillas, which Getir acquired for €1.1 billion in December 2022.

Now, Getir is refocusing its efforts exclusively on its home market, Turkey, as part of a comprehensive restructuring plan. This significant shift, approved by shareholders, involves splitting the company into two separate entities and reorganizing its leadership structure.

As part of this restructuring, co-founder and CEO Nazim Salur will step down, with Batuhan Gultakan, the head of Getir’s Turkish operations, assuming the role of CEO. Salur and his co-founders will remain as board members and hold minority stakes in the newly restructured grocery business. They will also control a new entity that includes Getir’s other ventures, such as the BiTaksi ride-hailing service, a job board, the N11 shopping platform, and the US-based FreshDirect grocery service.

Mubadala, an existing investor, will gain a larger stake in Getir's core food delivery operations in Turkey. “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,” said Hani Barhoush, a Getir board member.

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

This restructuring is a strategic response to the changing market dynamics post-pandemic. The pandemic-driven surge in demand for delivery services has waned as restrictions have eased, compelling Getir to prioritize cost-cutting and operational efficiency. Earlier reports suggested that investors were advocating for significant changes, including asset sales and market exits, to adapt to the evolving landscape.

In September 2023, Getir raised $500 million in a funding round, valuing the company at $2.5 billion, a sharp decline from its $11.8 billion valuation eighteen months earlier. This drop mirrors the broader downturn in venture capital markets amid rising interest rates and economic uncertainty.

Getir's acquisition of FreshDirect in November 2023 was a strategic effort to strengthen its presence in the US market. The company assured customers that service quality would remain unchanged, while FreshDirect would benefit from Getir's technological and operational expertise. Conversely, Getir aimed to enhance its product range by leveraging FreshDirect’s diverse offerings.

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