Getir was valued at $11.8 billion in March 2022.

Getir, the Turkish-based grocery delivery company, is undergoing a significant shift in its valuation, raising $500 million in a recent funding round that values the company at $2.5 billion. This marks a substantial decrease from its valuation of $11.8 billion just 18 months ago. The funding round was led by existing shareholders, including Abu Dhabi’s Mubadala Investment Company, G Squared, and prominent investor Michael Moritz.

This reduction in valuation reflects the challenging landscape faced by start-ups in the current venture capital market, where founders and investors must accept lower valuations to secure funding. The trend is exemplified by other companies like Hopin, which sold assets for $50 million despite being valued at $7.8 billion in mid-2021.(FT)

Despite the reduced valuation, Getir’s funding round is among the largest this year, underscoring the company’s ability to attract investment even in challenging times. Getir has been consolidating the rapid grocery delivery sector, acquiring rivals like Berlin-based Gorillas in a $1.2 billion deal. The company has also explored acquiring other competitors in Europe, emphasizing its commitment to growth.

However, Getir is now focusing its operations in five countries: Turkey, the UK, Germany, the Netherlands, and the US, scaling back from other markets. This strategic shift reflects a more measured approach after a period of rapid expansion.

Overall, Getir’s funding round highlights the changing dynamics in the start-up landscape, where established companies have an advantage in raising capital, even amid economic uncertainties and reduced valuations.

The venture capital market has seen a decline in funding for start-ups due to rising interest rates and economic conditions, with global venture capital funding decreasing by over 50% in the 12 months leading to March.

The upcoming IPOs of companies like UK chip designer Arm and US grocery delivery service Instacart will provide insights into market sentiment as tech companies consider going public.

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