Grocery-delivery app Getir, now worth $7.5 billion, eyes a US listing within 2 years

  • Grocery-delivery startup Getir is now valued at $7.5 billion after its third funding round of 2021.
  • CEO Nazim Salur says the firm, about to expand to the US, is considering a US IPO in two years.
  • Getir is among a crop of grocery-delivery apps ratcheting up wild valuations this year.
  • See more stories on Insider’s business page.

Grocery-delivery app Getir has been valued at $7.5 billion after raising more than $550 million in funding, its third capital raise of 2021, as it prepares to launch in the US.

Insider first reported rumors of the round earlier in May.

Founded in Turkey in 2015, Getir is among the crop of apps promising 10-minute grocery delivery and raising wild amounts of cash. Data analyzed for Insider by Pitchbook prior to Getir’s latest raise showed tech investors in Europe had already plowed $1.6 billion into grocery delivery startups in 2021, more than double the investment into the sector for the entirety of 2020. Getir alone has raised almost $1 billion this year.                    

Its app enables users to order a limited range of groceries and goods, and the company promises delivery by a rider within ten minutes. The startup fulfills orders using a network of small warehouses in city centers, often located under railway arches or on industrial estates.

In leaked documents obtained by Insider earlier this month, Getir’s round was billed as a “pre-IPO” fundraise.

“Not this year,” CEO Nazim Salur said Friday. “This is maybe a two-year timeframe,  give or take, maybe a little sooner or later.”

Asked where the company, one of Europe’s few consumer tech companies valued above $1 billion, would list, Salur said his first choice was the US.

“When we think of an IPO, that’s going to be the US. By far, the US is the best place for a tech IPO,” he said, adding that other markets had not treated tech companies “well.”

Salur declined to comment further, but the obvious recent example is UK food-delivery firm Deliveroo.

The Amazon-backed company listed in March on the London Stock Exchange and had a disastrous first trading day after being publicly rejected by a number of institutional investors. Fund managers pointed to risk factors such as Deliveroo’s reliance on gig-economy delivery riders and its unprofitability. But the rocky IPO has fuelled grumblings among venture capitalists that the UK is an unfriendly environment for high-growth tech firms to list.

Leaked financials show Getir has at least 6 million users

Internal numbers obtained by Insider this month indicate that Getir boasts more than 6 million users, 9 million monthly orders, and more than $800 million in gross merchandise value (GMV), on an annualized basis. GMV reflects the total value of goods sold through a platform, but does not account for fees or other costs. The figures did not show Getir’s losses, and CEO Nazim Salur said last month that only parts of the business are profitable.

He added on Friday that these were “old numbers” and said the business was now larger, but declined to give further detail.

The firm will use its fresh funding to expand into the US this year, going head-to-head with German rival Gorillas and US-based Gopuff. Elsewhere in Europe, it faces intense competition from local players including Dija, Weezy, and Zapp.

Getir and others hope that pioneering a “dark store” model and charging an additional £1 – £2 for convenience items will boost their margins in the famously low-margin grocery business.

Some analysts are skeptical that this particular crop of grocery-delivery apps will go sufficiently mainstream to justify near-decacorn valuations.

“There is latent demand for that service,” Bain retail expert Joelle de Montgolfier previously told Insider. “It is a specific subset of the market, so by no means is it solving the bigger conundrum of online grocery. It’s an interesting model, but it’s never going to be the most pervasive model.

“It’s solving for what happens in city centers, but by no means is it always relevant for less urban, less dense territories. It isn’t solving that whole ‘I need a full basket, carried to my doorstep.'”

Getir’s round was backed by existing investors Tiger Global and Sequoia, plus UAE sovereign wealth fund Mubadala and private equity firm Silver Lake.

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