Turkish food delivery startup Getir will be divided into two companies as part of a restructuring that will bring in an investment of $250 million by Mubadala Investment Co.
This move follows a power struggle between Getir Co-founder and CEO Nazim Salur and Getir’s Turkey head Batuhan Gultakan, as well as post-pandemic challenges faced by many popular delivery apps, Bloomberg reported Monday (June 24).
With the restructuring, Salur will be replaced by Gultakan, with Salur and his co-founders serving as board members and holding minority stakes in the grocery business, according to the report.
Salur and his co-founders will also take a controlling stake in a new entity that will be made up of Getir’s other businesses, including a ride hailing operation called BiTaksi, a jobs board, a shopping platform called N11 and a U.S. grocery business called FreshDirect, the report said. Mubadala will be a minority shareholder.
It was reported in April that Getir was grappling with the need to cut costs and restructure as demand for its services waned.
Investors were pushing for significant changes within the company, including asset sales and market exits.
After experiencing a surge in business during the pandemic as customers relied on its services while confined to their homes, Getir saw the demand for grocery delivery diminish as the world began to reopen.
At the time of that report, investors had poured over $2 billion into Getir.
In September 2023, Getir raised $500 million in a funding round at a valuation of $2.5 billion.
Eighteen months earlier, the company had been valued at $11.8 billion.
It was reported at the time that the decline in valuation reflected the downturn in venture capital markets due to rising interest rates and worsening economic conditions.
Getir acquired FreshDirect in November 2023, saying it aimed to grow in the United States.
The company said at the time that customers would continue to receive the same service they did before; that FreshDirect would leverage Getir’s technology and operational footprint to serve its customer base; and that Getir would gain FreshDirect’s product range to increase the quality and breadth of its own.
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