In recent funding, Getir, which is an Istanbul-based grocery delivery app, raised $550 million. This funding tripled the company’s value to $7.5 billion.
The deal increased Getir’s value more than the other food delivery apps, Grubhub and Deliveroo. Not only this, its value has gone more than the UK supermarket WM Morrison, and Marks and Spencer. It started expanding out of Turkey in January and has plans to launch in the US this year.
Getir is a Turkish-based start-up, established in 2015. With its mobile app, it provides on-demand grocery items with ultrafast delivery. Moreover, it also provides courier service for food deliveries from restaurants. Istanbul serves as its headquarters while offering its services across Berlin, Amsterdam, London, and Turkey.
Getir’s Chief Executive, Nazim Salur, feels that there are many versions coming in every day. So, if they don’t take care of their business, somebody else will.
Getir’s funding has reached approximately $1 billion in the last four months with the recent round of funding.
There is a manifold increase in the instant grocery market’s competition.
Flink, Berlin-based Getir’s competitor, announced last Friday that it raised $240 million. Here, the investors were Mubadala Capital, Bond, and Prosus. Flink is just a four-month-old company, but it has still expanded itself in more than 18 cities.
Despite warnings from veterans in the food delivery industry that there is no profit in the rapid delivery model, its investors are eagerly investing in it due to unprecedented growth rates. Salur suggests Getir right now has more than 25 delivery hubs in London. It increased its profit fivefold in 2020 and expects to do the same in 2021. He also predicts that in many countries, more than half the grocery shopping will be online within ten years. The company plans to launch three delivery hubs in three large US cities at the end of this year.
In 2014, Salur developed an idea to deliver selected grocery items to the customers in 10 minutes. At that time, even the fastest ecommerce services arrived at a minimum in 30 minutes and maximum in a few days. However, they didn’t like the idea as it was unfeasible and unnecessary. However, the team put their sweat, blood, and faith in it for many years. Eventually, they have made it capable for many investors to invest in the company.
Turkey, which is Getir's home market, operates almost 500 stores. It delivers a large number of items from big farmhouses, making Getir a long-term grocery player. With their 10 minutes approach, they are planning to have onboard millions of consumers and diversify their services according to the demands.