Turkish grocery delivery company Getir has reportedly seen its value slashed down to $2.5bn, as it raises $500m in its latest funding round.
Despite the lucrative deal, the organisation’s total value has dropped dramatically, from its previous valuation of $11.8 billion 18 months ago, according to a report from the Financial Times, citing unnamed sources.
The round, which is expected to close later this month, was led by existing investors, including the Abu Dhabi-based wealth giant, Mubadala investment Company and prominent investor Michael Moritz.
Despite the reduced valuation, Getir’s latest funding round is one of the largest this year, but the reduced valuation seems to reinforce the trend for VC’s which has seen start-ups being forced to accept lower valuations for large cash injections.
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 that has hit it hard. Even so, the organisation has held talks to acquire it German rival Flink, reinforcing the Istanbul-based company’s desire to scale its European operations.
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.
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