Business

Getir’s valuation tripled to $7.5 billion as investors chase grocery apps frenzy


Getir, the Istanbul-based grocery delivery app, has raised $550 million in new funding — tripling its value to $7.5 billion, including the new capital, just three months after the last funding.

The deal means that seven-year-old Getir, who is just getting started sought Out of Turkey in January and now planning a US launch this year, it’s worth more than food delivery apps Deliveroo and Grubhub, as well as British supermarkets WM Morrison and Marks and Spencer.

Investors are piling into the latest e-commerce trends of Fast Grocery Delivery. Getir pioneered the concept of delivering convenience store items in less than 10 minutes in Turkey several years ago, but a slew of counterfeiters have emerged over the past year, fueled by coronavirus-induced shutdowns.

“The reason we’ve come up so frequently is because we’ve decided to go to the US this year and not later,” said Getir CEO Nazim Salur. Suddenly a lot of clones appeared everywhere. If we don’t take care of business, others will.”

The latest round brings Getir’s total funding in the past four months to nearly $1 billion.

DisruptAD and Mubadala Investment, an arm of Abu Dhabi’s sovereign wealth funds, as well as Silicon Valley’s Silver Lake Fund, are joining Getir as new investors, along with existing backers Tiger Global and Sequoia Capital.

Getir has opened 28 delivery centers in London and plans to expand to Amsterdam, Paris and Berlin

The competition in the instant grocery market is increasing.

Also on Friday, Berlin-based Getir competitor Flink announced that it had raised $240 million in new capital from investors including Prosus, Bond and Mubadala Capital. Flink was launched only four months ago and already operates in more than 18 cities.

One of Getir’s other European competitors, Gorillas, is also reported to be raising funds again at a multi-billion dollar valuation, just months after its last round.

in March GubavThe US-based delivery app that delivers “immediate daily needs” has raised $1.2 billion at a valuation of nearly $9 billion from investors including SoftBank Vision Fund and D1 Capital, to fuel its expansion in Europe.

despite of Warnings From food delivery veterans to the still unproven and unprofitable express delivery model, investors are excited about the unprecedented growth rates. Getir, which has now opened 28 delivery centers in London and plans to expand to Amsterdam, Paris and Berlin this month, increased revenue fivefold last year and is likely to do so again in 2021, according to Salor.

Getir hopes to launch in three large US cities later this year, with more in 2021.

Challenge Many skeptics About his nascent industry, Salor insists that Getir’s business model can operate “wherever pizza is delivered.” He predicts that in less than 10 years, more than half of grocery orders in many countries will be online.

Salur is also confident that today’s approach of booking deliveries days in advance, as typically offered by traditional supermarkets and grocery delivery pioneers like Ocado, will soon beat the Getir’s model of hundreds of “dark shops” and electric scooters.

“The scheduled delivery is a BlackBerry,” Salor said. “We are the iPhone.”

Nazim Salor, CEO of Getir, believes the company can replicate its European success in the United States

Salur, now 59, is one of the five founders of Getir. He worked in furniture production, then worked as a real estate broker for second-hand industrial facilities before launching his first startup, Turkish taxi calling app BiTaksi, in 2013.

After BiTaksi consistently met Salur’s goal of three-minute wait times, in late 2014 he came up with the idea of ​​offering customers a limited selection of groceries within 10 minutes.

“About ten minutes now,” he said. “It’s different, it’s creating its own customer base.”

At the time, even the fastest e-commerce services took at least 30 minutes and as long as a few days to arrive. But when Salor questioned his friends about the 10-minute concept, they dismissed it as unnecessary or unworkable.

“We got the idea when everyone thought it was a silly idea,” Salor said. “We believed in him, put in blood and tears for many years. Now many put money afterwards.”

Despite the sudden influx of capital, Salor insists Getir will spend it wisely. “We are not a spoiled Silicon Valley startup and we have a lot of money to get rid of,” he said.

While Getir’s service may seem straightforward to consumers – offering a limited selection of about 1,500 items from “small fulfillment centers” scattered across the city – Salur insists it’s hard to replicate.

“There are at least two thousand details of our work and the clones think there are a few hundred,” he said. “We have the most knowledge and the most data.”

In its home market in Turkey, where there are now nearly 500 dark shops in 30 cities, Getir has already expanded to offer an even larger selection of large warehouses—albeit in more than 10 minutes—and hot meals.

“We are a long-running grocery game,” Salor said. “we [will] Win people’s hearts and minds in 10 minutes, get under your skin, and then if people need more of us we can diversify our offerings.”



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