Turkish speedy grocery company Getir is facing significant challenges in the European market as it recently announced its exit from Italy and Portugal. This move comes after Getir withdrew from France in June, where it filed for bankruptcy, and Spain a week later, resulting in thousands of employees in those countries facing redundancy.
In an official statement, Getir stated that the decision to leave Italy and Portugal will allow the company to concentrate its financial resources on existing markets with stronger opportunities for operational profitability and sustainable growth. The company will continue to operate in five countries: the UK, the US, Germany, the Netherlands, and its home market, Turkey. These markets reportedly generate 96% of Getir’s total revenues. At its peak in 2022, Getir had a presence in nine different markets.
Sifted, a news platform focusing on European startups, has reported that Mubadala, a sovereign wealth fund, is in advanced discussions with Getir to lead a new funding round. This funding could be crucial for the company’s financial stability and future growth prospects. To date, Getir has raised $1.8 billion from investors, including Tiger Global, Sequoia, and Mubadala.
The past two months have been particularly turbulent for Getir, with its UK arm facing financial difficulties. The company has been working to shut down warehouses, auction off assets like mopeds and fridges, and even sought help from volunteers to promote discounts and free merchandise to boost sales.
The speedy grocery sector as a whole has been grappling with challenges over the last 18 months. Factors like inflation and a sharp decline in venture capital funding have made it difficult for many companies to achieve profitability. Despite these obstacles, Getir made a significant move in December 2022 by acquiring its struggling German competitor, Gorillas, in a rescue deal. The company was also reportedly exploring the acquisition of another German rival, Flink, but the negotiations did not materialize.
As Getir navigates through these difficult times, securing additional funding and focusing on markets with strong growth potential will be crucial in determining its long-term success in the fiercely competitive grocery delivery industry.
