Report: Getir to Raise $500 Million in Funding Round

Turkey-based grocery delivery company Getir is reportedly raising $500 million in a new funding round.

The investment values the company at $2.5 billion, a decrease from its previous valuation of $11.8 billion 18 months ago, the Financial Times (FT) reported Friday (Sept. 8), citing unnamed sources.

Getir did not immediately reply to PYMNTS’ request for comment.

The reduced valuation of Getir reflects the current downturn in venture capital markets due to rising interest rates and worsening economic conditions, according to the FT report. Startup founders and investors are now accepting lower valuations to secure new funds. The trend is not unique to Getir, as other companies have also experienced diminished valuations.

Despite the reduced valuation, Getir’s latest funding round is one of the largest this year, the report said. More established companies have an advantage in raising capital, even in challenging conditions. The round also demonstrates the confidence that investors have in Getir’s ability to generate profits.

Getir has been working to consolidate its position in the rapid grocery delivery sector, which saw a surge in demand during the pandemic but has since seen a downward shift, per the report. The company acquired several rivals, including Berlin-based Gorillas in a $1.2 billion deal that valued the combined group at $10 billion. Getir also held talks to acquire its German rival Flink and focused its operations in five countries: Turkey, the United Kingdom, Germany, the Netherlands, and the United States.

The company also said over the summer that it planned to exit three European markets — Italy, Portugal and Spain — and lay off 2,500 workers, or about 11% of its workforce.

Ultrafast delivery did fare well after pandemic lockdowns, with many players that had been rapidly expanding later cutting staff, exiting certain markets or shutting down.

Getir’s decision to raise new capital and focus on key markets comes as the company aims to transition from a period of excessive growth and capital commitments, according to the FT report. The rapid grocery delivery sector has been a prime example of the age of excess, and Getir’s strategic shift reflects a more measured approach to expansion.