Getir Acquisition: Key Details, Impact, and What Comes Next

The acquisition of Getir by Mubadala marks a significant shift in the fast grocery delivery industry. With a $250 million investment, Mubadala gains a controlling stake in Getir's domestic operations, aiming to stabilize and refocus the company. This strategic move underscores the importance of financial stability and long-term planning in a rapidly evolving market.

What Is Getir?

Founded in 2015, Getir is a rapid delivery service that promises to deliver orders to customers' doors in minutes. Its core offerings include a mobile app for ordering, a wide variety of products, and promotions for every order. What sets Getir apart in the market is its commitment to ultra-fast delivery and a diverse product range, ensuring convenience and variety for its users.

Who Acquired Getir?

Mubadala is a sovereign investor based in Abu Dhabi, UAE, managing a diverse portfolio of assets both domestically and internationally. The company plays a crucial role in accelerating economic development and diversification in Abu Dhabi. Key services include private equity, UAE investments, credit and special situations, and real assets. With assets under management totaling USD 302 billion, Mubadala has a significant influence in over 50 countries, deploying capital in promising sectors and geographies.

When Was Getir Acquired?

Mubadala acquired a controlling stake in Getir on June 24, 2024. This acquisition came at a time when the quick delivery industry was experiencing significant challenges, including declining consumer demand and financial instability. Getir, once valued at over $10 billion, had to withdraw from several international markets to manage cash flow. The restructuring plan, which included a $250 million investment from Mubadala, aimed to stabilize Getir's operations and secure its long-term strategy amidst these industry trends.

Why Was Getir Acquired?

• Market Expansion: Mubadala's acquisition of Getir allows for a strategic refocus on core profitable operations, particularly in Turkey. This move aims to stabilize Getir's market presence and potentially expand its reach within the domestic market, leveraging Mubadala's financial backing to support growth initiatives.
• Technology Integration: While specific details on technology integration are not explicitly mentioned, Getir's business model inherently relies on advanced logistics and delivery systems. Mubadala stands to benefit from Getir's established technology infrastructure, which includes a robust mobile app and efficient delivery mechanisms, enhancing operational efficiency.
• Competitive Advantage: The acquisition strengthens Getir's position against competitors by securing critical funding and resources. Mubadala's investment and the subsequent restructuring plan aim to streamline operations, allowing Getir to maintain its competitive edge in the fast grocery delivery market, particularly through its ultra-fast delivery service model.

Acquisition Terms

• Acquisition Price: $250 million investment by Mubadala.
• Payment Method: Mubadala would acquire the profitable local grocery delivery operations in return for the $250 million investment.
• Key Conditions or Agreements:
  • The restructuring plan involves separating non-core businesses from the profitable local grocery delivery operations.
  • The remaining subsidiaries would be controlled by Getir's founders, Nazim Salur and Serkan Borançılı.
  • Getir's independent directors and shareholders approved the restructuring plan, although it is contested by the founders.
  • Legal actions are being pursued by Getir's founders in multiple jurisdictions, claiming the vote for restructuring was unlawful.
  • The restructuring plan aims to secure Getir's financial stability and sustain employment for over 18,000 Turkish employees.

Impact on Getir

The acquisition of Getir by Mubadala has led to significant changes in the company's operations and management. Mubadala's $250 million investment resulted in a controlling stake in Getir's domestic operations, with a restructuring plan that separates non-core businesses from the profitable local grocery delivery segment. This restructuring saw Nazim Salur stepping down as CEO, replaced by Batuhan Gultakan, while Salur and his co-founders transitioned to board member roles. The founders retained minority stakes in the grocery segment and control over other ventures like BiTaksi and FreshDirect.

In terms of product offerings and services, the focus has shifted towards streamlining and enhancing the efficiency of Getir's core grocery delivery operations. This strategic refocus aims to stabilize the company's market presence in Turkey, potentially leading to a more reliable and faster service for customers. Employee reactions have been mixed, with Mubadala emphasizing job security for over 18,000 Turkish employees, though specific employee and customer feedback remains sparse. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring smoother transitions and better outcomes.