Getir investors said to fund European exit with new cash injection

23rd Apr 2024 15:19

(Sharecast News) - Investors in grocery delivery app Getir, which at one point attained a valuation of almost £10bn, are reportedly set to inject yet more money into the company to fund its exit from the UK and Europe.

According to Sky News, shareholders in the company have drawn up provisional plans to commit tens of millions of pounds more into Getir in the coming weeks, even as its retrenchment poses a threat to thousands of jobs.

Sources close to the situation told Sky that leading investors - including Mubadala, the Abu Dhabi state-backed fund, Sequoia Capital and Tiger Global - were understood to have agreed to the new funding plan in recent days.

It will add to the more than $2bn Getir has already raised, making it one of the world's most handsomely backed fast-delivery platforms

An announcement from Getir - which means 'to bring' in Turkish - is expected imminently, bringing the curtain down on an ill-fated breakneck expansion into Europe.

Its operations in the UK, Germany and the Netherlands are all expected to be shut, with discussions ongoing about the fate of its Fresh Direct arm in the US, which it only acquired a few months ago.

The restructuring will leave Getir as a business focused on its domestic Turkish market, with the company planning to focus largely on its food delivery operations there.

Its new funding from shareholders would cover the cost of exiting the three markets in Europe, as well as providing additional capital to invest in the Turkish business, according to insiders.

Sky sources said an announcement could come this week, although people close to the company cautioned that the exact timing had yet to be finalised.

The valuation at which the new money is being injected was unclear.

Sky revealed last week that its withdrawal from the UK was likely to put about 1,500 jobs at risk.