🚚 Getir's Cash Crunch
Getir, the rapid grocery delivery app from Turkey, is on the brink of running out of cash. Sky News reports that the company has only weeks to secure new funding. This comes amid demands from shareholders to change its leadership and governance. Getir’s founder, Nazim Salur, is under pressure to step back, while investors insist on the return of Derya Erdemli as chief strategy officer. If these changes aren't made, a significant tranche of funding required to restructure Getir's Turkish operations will not be released.
🛑 UK Exit and Job Losses
Last month, Getir confirmed its exit from the UK market, putting 1,500 jobs at risk. The company, once valued at nearly £10B, still owes millions to Tottenham Hotspur for a sponsorship deal. The Abu Dhabi state investment fund, Mubadala, and G Squared have already contributed tens of millions to help Getir withdraw from the UK, Germany, and the Netherlands. However, further funds are contingent upon immediate leadership changes. Insiders say Getir could run out of money this month if no alternative financing is found.
💥 Pandemic Boom and Bust
Getir’s rise and fall reflect the volatile nature of tech valuations post-pandemic. The company, which means 'to bring' in Turkish, thrived during COVID-19, attracting substantial investment. Yet, like many tech firms, it now faces significant challenges. The company bought Gorillas in a $1.2B stock deal in December 2022, but its fortunes have since declined. Many rivals have already gone bust or been absorbed in a wave of industry consolidation.
📉 Future Uncertain
The current impasse over funding casts doubt on Getir's future. The company’s financial troubles have forced it to retreat to its home market, slashing thousands of jobs in the process. If founder Nazim Salur does not convene a shareholder meeting to implement the demanded changes, Getir may not survive. This situation underscores the fragile nature of start-ups that soared during the pandemic but now struggle to stay afloat as market conditions change.
Will Getir manage to secure the funding it needs to survive?
