Getir’s valuation has dropped to $2.5bn (£1.9bn) as it looks to raise cash in a new funding round which looks to save the start-up delivery company.
The Turkey-based grocery delivery company had previously been valued at nearly $12bn (£9.6bn) in early 2022, but has now been struggling to make profits amid ‘challenging conditions’.
According to the Financial Times, the new equity funding round is led by existing shareholders, including the Abu Dhabi wealth fund Mubadala Investment Company, and includes a host of high-profile investors.
Getir revealed last month that it is to make more than 10% of its global team redundant as it looks to make operational efficiencies.
Founded in 2015, Getir became one of the largest of more than a dozen delivery app companies that raised more than $5bn (£4bn) during the pandemic.
Most of its rivals have already been sold or shut down as consumer demand shifted after the Covid lockdowns. Among the only other freestanding private companies in the sector are the UK’s Zapp and US-based Gopuff.
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Getir sought to consolidate the competition in the rapid grocery delivery sector after rivals emerged during the pandemic.
A spokesperson from Getir told the FT: “We’ve turned a chapter on excessive growth and excessive capital commitments,” adding that the rapid grocery delivery sector was “exhibit A of the age of excess”.
After expanding rapidly around the world, Getir is now withdrawing from Spain, Italy and Portugal, and other markets including the UK, Germany, the Netherlands and the US, in order to focus on existing operations.
