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Trouble between Mubadala and Turkish startup Getir? Tensions between Turkish last-mile delivery startup Getir ’s founders and Mubadala — its largest investor — are rising after a member of its top management, Chief Strategy Officer Derya Erdemli, was dismissed by the startup’s management, Bloomberg reports, citing unnamed insider sources.
Who owns what: Mubadala holds around 30% of Getir’s shares, making it the firm’s largest shareholder. CEO and founder Nazim Salur and Turkish investors hold another 25% stake in the outfit, Bloomberg said.
Getir’s value took a dip: Getir’s valuation crashed to USD 2.5 bn in September, falling steeply from USD 11.8 bn in 2022, the outlet said. This was due to the combination of easing of pandemic regulations and lockdown, as well as spiraling costs associated with acquisitions.
Biting off more than it could chew: Problems arose after Getir began acquiring competing apps abroad, including shelling out USD 1.2 bn to snap up Berlin-based delivery startup Gorillas in 2022, Bloomberg also reported separately. Despite doing away with some of the competitions, Getir’s acquisition of Gorilla saw ballooning costs, as merging additional warehouses, employees and tech proved costly and time-consuming, Bloomberg explains.
What happened next: Mubadala pushed Erdemli and top management to downsize international operations and slash cashflow burn in December 2023, causing tensions to escalate between the Abu-Dhabi based wealth fund and Salur. Mubadala has since called for Getir to exit its international operators and refocus on Turkey.
Getir began shuttering int’l operations: Getir shut down operations in France, Italy, Portugal, Spain last summer, with the company’s cashflows burning through USD 50 mn a month at the time, Bloomberg reported at the time. The start-up said it would leave its remaining international operations last month, closing operations in the UK, Germany, Netherlands and the US, which together accounted for some 7% of its revenues, Bloomberg reported separately.
Investment life-plug: Mubadala, along with other investors, provided Getir with additional funding — which Bloomberg says came in at about USD 200 mn — to Getir in late April. The investment was split into tranches, with USD 90 mn of the total already paid out, and full delivery contingent upon Getir meeting set targets, including changes to the board and a reshuffle of senior management, sources told Bloomberg last month.
Where are we now? Salur is yet to call for a meeting to figure out a new board. Erdemli’s dismissal last week is set to spark further tension with foreign backers, insider sources speculate.
