Istanbul-based Getir, an instant delivery company, announced that it has decided to withdraw its operations from Spain, Italy, and Portugal. The move comes as the Turkey-headquartered company approaches the final stages of securing new funding.
However, the company will continue its operations in the UK, the US, Germany, the Netherlands, and Turkey. These countries currently contribute to 96 per cent of the company’s revenues.
This clarification comes in response to rumours about the possibility of Getir seeking bankruptcy protection in the UK, reports TechCrunch.
The company’s recent decision to pull back from certain markets coincides with a significant cash crisis and the challenges of finalising a funding round that has been in progress for months.
Getir burning €90M per month
While the funding was initially expected to reach approximately $500M earlier this year, it has encountered setbacks, and the current amount is likely to be considerably lower. Unfortunately, this may result in the Turkish company’s valuation being halved or even more.
According to TechCrunch, a source alleges that the Istanbul-based company is still burning through $100M (approximately €90M) per month, which could be a driving factor behind the company’s effort to streamline its operations.
Despite the setbacks, the company remains determined to continue its business in the U.K., U.S., Germany, the Netherlands, and Turkey.
“Getir’s withdrawal from these three markets will allow it to focus its financial resources on existing markets where the opportunities for operational profitability and sustainable growth are stronger. Getir is very grateful for the hard work and dedication of all its employees in Spain, Portugal, and Italy,” the company says in a statement to TechCrunch.
Mubadala expected to lead the funding round
The report also added that Mubadala, an investment firm based in Abu Dhabi, will take the lead in Getir’s upcoming investment round. However, specific details regarding the timing and financial aspects of the investment round were not divulged by the VC.
“Mubadala has been an investor in Getir since 2021. We are currently in advanced discussions with Getir to lead their latest funding round and we continue to work closely with the company in support of its growth in the years ahead,” a spokesperson told TechCrunch.
Founded in 2015 by Nazım Salur, Serkan Borançılı, and Tuncay Tütek, Getir is a last-mile delivery platform with a 10-minute grocery delivery proposition.