Getir rides on quick meals supply valued at $ 7.5 billion
A Getir scooter in London.
LONDON – Turkish startup Getir has raised $ 550 million in a new round of investments and valued the company at a whopping $ 7.5 billion.
The Istanbul-based company raised the fresh money from companies like Silver Lake, Mubadala, Sequoia and Tiger Global. Getir has raised nearly $ 1 billion in three separate funding rounds so far in 2021. The company was last privately valued at $ 2.6 billion in a financing round in May.
It’s the latest sign of frenzied venture investment in the glowing, fast-paced grocery delivery space. Apps that promise that groceries will be delivered to your doorstep in just 10 minutes have popped up across Europe, with a number of companies from Turkish Getir to German Gorillas raising huge sums of money from investors.
These companies operate so-called “dark stores”, fulfillment centers, which are used to carry out online orders instead of serving customers personally. Gorillas and British rivals like Dija and Zapp hire their couriers rather than relying on contractors like Deliveroo and other players in the gig economy.
According to Bloomberg, Gorillas is reportedly targeting a minimum investment round of $ 500 million, which the company would value at $ 6 billion. Gorillas declined to comment when contacted by CNBC.
Elsewhere in the industry, German rival Flink said Friday that it raised $ 240 million in fresh funds from Prosus, Bond and Mubadala Capital.
Getir, which started in London and Amsterdam earlier this year, plans to use the fresh money to expand into Paris, Berlin and several cities in the United States. That would mean the company would compete directly with food suppliers like Uber and DoorDash, who specialize in groceries, as well as privately owned start-up Instacart.
“The appetite for Getir and the fast delivery of food is great,” said Nazim Salur, founder of Getir, in a statement on Friday. “As pioneers in the market, we continue to be characterized by constant innovations in order to offer the industry standard.”
The fast food delivery phenomenon was fueled not least by the coronavirus pandemic, as people spent more time indoors due to lockdown restrictions around the world. However, it has become a highly competitive market. Some experts doubt the model can survive in the long term, especially given the investment required to scale it up.