Speedy grocery company Getir has raised $500m in fresh financing at a much-reduced post-money valuation of $2.5bn. That’s less than a quarter of the $11.8bn valuation the Turkish scaleup attracted when it last raised money in 2022, according to reporting by the Financial Times.
Sources told the publication that the deal is expected to close later this month and will feature existing investors Mubadala, G Squared and former Sequoia Capital partner Michael Moritz.
Getir has been struggling with cashflow issues for months, with sources telling Sifted that the company has asked office staff to clear out closing warehouses to cut costs and sent employees door-to-door with goodie bags to try and boost sales.
The new downround comes just months after the company withdrew from the Spanish, Italian, Portuguese and French markets, as it tries to focus its efforts and reduce its cash burn. Getir now has operations in just five markets: Turkey, the UK, Germany, the Netherlands and the US.
Speedy grocery companies around Europe have struggled to live up to the lofty valuations given to them by investors in 2021 and 2022 — in December last year, Getir acquired its rival Gorillas for around a third of its peak valuation.
It’s, of course, not only delivery companies that are being brought down to earth as VC valuations tumble during the economic downturn. In August, digital events platform Hopin — once valued at $7.8bn — sold its flagship events product for just $50m.
Sifted has contacted Getir for comment.
