Getir denies rumours of halved valuation amid mass store closures

Fast delivery company Getir has denied reports of a $500 million deal that cuts its valuation almost in half despite recent store closures and mass layoffs taking place.

The firm has raised $300 million from Abu Dhabi state fund Mubadala at a valuation of around $6.5 billion on top of another $150 million to $200 million added by other shareholders, according to the report by Insider.

Last March, Getir closed a $768mn funding round led by Mubadala that valued the company at around $12bn, according to Reuters.

The new deal will cut the valuation by 45% – which could have been reduced even lower if the deal hadn’t come with a high liquidation preference.

Getir has addressed staff in a message, denying rumours of financial struggles.

“As a growth company, Getir is always in talks with its existing or potential investors for new funding. Having said that, recent rumours claiming that Getir has of now raised $500 million at valuation of $6.5 billion is incorrect.

“If and when we conclude a structured or a priced round, we will share the news with the public.”


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In March, Getir started laying off workers without a warning, with up to 300 jobs set to be axed, according to insider reports.

Now, it has shut down dark stores in Wales and South West England, as well as Birmingham and London.

Staff at the Birmingham store had not been consulted about the risk of redundancy and the source said they were writing to their local MP as Getir was not responding to questions.

Getir employees expressed concerns that the company might be going into administration, adding: “No one is even reachable at head office.”




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1 Comment. Leave new

  • Franchise owner
    April 23, 2023 9:16 pm

    This article is unbelievably correct. This story also effects franchise owners like me whom has lost there livelihood whom has invested into what they though and lead to be the future in grocery app delivery.

    I sincerely regret now doing business or even attending a franchisee scam networking event, meeting getir and their fraudsters.

    My family has incurred financial
    Loss with our store now gone overnight. I was forced to let my staff go. No support from getir.

    Will be taking legal action for losses incurred. Do the right thing for once and give us back our money.

    This article is very frightening if they are planning on going under, other franchisee owners have a lot to lose.

    I have already had limited contact since my store was closed by getir, letting my team go and literally been hearing the events unfold via the grapevine.

    Already heard some stores circulating that have had the ‘smash and grab’ job to remove stock off site in hours by there ‘mob squad’ and even in 1-2 cases staff being man handled out of the store after loosing there jobs.

    It’s a complete joke at the moment.

    Advice to prospective investors: if your truly have any contact with getir and franchisee team believe me when I say they are trained professional con artist: you have a lot to loose if you proceed.

    Current franchise owners: you shall be in my prayers that you don’t lose your livelihood and financial wealth overnight by this scam.
    Get out whilst you can.

    Reply

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