6 months ago • 2 mins
What’s going on here?
Turkish grocery delivery firm Getir has seen better days, after clocking up a terribly underwhelming valuation.
What does this mean?
During the pandemic, our doorsteps were the hottest dining spots – and Getir was the chef de cuisine. Founded in 2015, the firm was among the biggest of more than a dozen delivery-app companies that raised over $5 billion in the period. But as lockdowns lifted, the delivery buzz quieted down, and many of Getir’s peers either shuttered or got sold. Still, the Turkish titan survived – but now, with interest rates high and economic conditions wobbling, its quest for fresh funds is facing headwinds. And sure, Getir is set to pocket $500 million in its latest fundraising round, but that’s not to say it’s been smooth sailing: the firm’s valuation did shrink from a whopping $12 billion to a far more humble $2.5 billion in 18 months.
Why should I care?
Zooming in: Getir, let’s get this bread.
Getir’s situation is typical of the startup ecosystem right now, with venture capital funding down over 50% in the year to March. But here’s the twist: despite this valuation dip, Getir’s recent fundraising stands out as one of the year’s biggest. And that stands to reason: the firm’s an established presence in the space, especially after acquiring rival Gorillas last year – and it’s got plans to double-down on five countries for more sustainable growth. Taken as a whole, then, that seems to have softened investors’ skepticism – and helped open their wallets too.
For markets: Venture a guess.
Word on the street is that venture funding might start to bounce back by the end of the year, and gain momentum in 2024. And with big players like chip maestro Arm and US delivery champ Instacart prepping for their market debuts, we’re set for a front-row seat to gauge if investor faith is truly reviving.
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