Getir plans new funding round for H1 2023

Erdinc Ergenc and Murat Basboga
02 February 2023

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Turkish ultra-fast grocery delivery company Getir has started a process to raise a new funding round in the first half of this year, four sources familiar with the situation said.

The company is looking to raise equity, debt or both, and talks have already begun with all options on the table, one of the sources said. It is in no hurry to finalise the round in a limited time or at a particular valuation, this source said, adding that Getir is also able to raise extra financing from its sponsors.

Getir, which was valued at more than USD 10bn in its latest round, will aim for a higher valuation now, another one of the sources said.

Mubadala Investment Company, a UAE-based sovereign investor with a USD 245bn assets under management, led Getir's last funding round. Other investors include global tech funds Abu Dhabi Growth Fund, Sequoia Capital, Alpha Wave Global and Tiger Global.

There is not yet a specific target size for the round, but a figure will be decided during the talks, all the sources noted.

Getir plans to use the proceeds to maintain sustainable growth and handle the remaining costs of recent acquisitions, one source said. It will also use the money to help it survive the ongoing global economic turmoil until financing conditions revive in the latter half of the year, and to maintain its position as the global market leader, another source said.

Early-acting tech investors have recently been taking positions to better exploit opportunities, and are expected to take part in Getir's round, all the sources said. Getir is too big to fail, one source said. Its existing backers are expected to fully support its funding efforts, the sources said.

The company has changed its focus to sustainable, rather than super-fast, growth, even though the fast grocery delivery market is far from saturation, unlike the restaurant delivery business, one of the sources said, adding, "the crazy growth rage is over now and it is time for sustainability."

Getir raised more than USD 1bn in 2021, and later raised a further USD 768m investment round in March 2022, increasing its valuation to USD 11.8bn. This brought Getir's total investment to USD 2bn, making it Europe's first decacorn in the sector.

These funding rounds have armed Getir with the largest war chest among its peers, with which to lead industry consolidation and combat ongoing economic turmoil, the sources said. The company took financial and operational measures as early as March 2022, just after the last round, foreseeing the difficulties that began in the last quarter of that year, which are now paying off, the sources said. It expects markets to recover in 2Q23, they added.

Getir did not respond to requests for comment.