Mubadala Set to Take Controlling Stake in Getir After $250 Million Injection

Yazhou Sun, Bloomberg News

A courier delivers food for rapid grocery delivery company Getir in Istanbul, Turkey.

, Bloomberg

(Bloomberg) -- Turkish food delivery startup Getir has agreed to a restructure that will split the business and bring in a $250 million capital injection led by Abu Dhabi wealth fund Mubadala Investment Co.

Mubadala will lead the round and take a controlling stake in Getir’s domestic grocery and food business in Turkey, according to a statement from Getir on Monday. Cofounder and Chief Executive Officer Nazim Salur will be replaced by Getir’s Turkey head Batuhan Gultakan.

The restructure follows a power struggle between Salur and Mubadala. Salur last month agreed to convene an annual general meeting to determine the future of the company — with the possibility he could change roles in order to ensure more funding for Getir, Bloomberg News reported.

Salur and his cofounders will serve as board members and hold minority stakes in the grocery business. They will separately take a controlling stake in a second new entity comprising Getir’s remaining businesses, including its BiTaksi ride hailing operation, jobs board, N11 shopping platform and its US FreshDirect grocery business. Mubadala will be a minority shareholder.

A new fintech startup, GetirFinance, will be 40% owned by Getir’s founders, 32% by Mubadala, 20% by Turkish national bank Isbank’s Maxis fund and 8% by Crankstart, the personal investment vehicle of veteran Sequoia investor and early Getir backer Michael Moritz.

Getir, founded in 2015, expanded quickly beyond Turkey into Europe and the US during the pandemic. Like other popular delivery apps, the company shipped out groceries on demand in as little as 10 minutes via couriers on bicycles or motorbikes. Once valued at $11.8 billion, the startup struggled to manage its cash burn and exited the UK, Germany, Netherlands and the US in April this year.

“Mubadala has been a long-term and committed investor in Getir, and this capital injection reflects our strong confidence in the promising future of the company’s core business in Turkey,” Getir board member Hani Barhoush said in the statement.

--With assistance from Kerim Karakaya.