Istanbul, Türkiye – Founders of rapid grocery delivery service Getir, Nazım Salur, Serkan Borançılı, and Tuncay Tütek, have initiated a $700 million legal action against Abu Dhabi sovereign wealth fund Mubadala. The lawsuit, filed recently, alleges "betrayal" and breach of contract by Mubadala concerning Getir's financial restructuring and attempts to secure new funding. This legal battle emerges as Getir navigates significant operational shifts and a sharp decline in valuation from its peak.

The dispute underscores the increasing pressure within the global rapid delivery sector, marked by aggressive expansion followed by market corrections and financial re-evaluations. Getir, once valued at $11.8 billion in 2022, has seen its valuation plummet to an estimated $2.5 billion following a recent restructuring. This decline prompted the company to exit key markets, including the UK, Germany, Netherlands, and the United States, and implement substantial workforce reductions, affecting tens of thousands of employees over the past two years.

According to court documents and private correspondences reviewed, the founders accuse Mubadala of interfering with Getir's fundraising efforts and restructuring plans. Specifically, the lawsuit reportedly centers on a $700 million guarantee that the founders claim Mubadala had agreed to provide. This alleged commitment was crucial for stabilizing Getir's finances and securing additional investment, particularly during a period when the company was actively seeking capital injections. The founders reportedly tried to involve other significant investors, including Michael Moritz of Sequoia Capital, in mediation attempts before escalating the matter to legal action.

Mubadala, a major investor in Getir, participated in the company's $768 million Series E funding round in 2022, contributing approximately $300 million. The sovereign wealth fund has reportedly denied the allegations, asserting that it has consistently acted in Getir’s best interests and in accordance with its fiduciary duties as an investor. Mubadala has stated its commitment to supporting Getir's long-term sustainability and growth through its restructuring efforts, despite the challenging market conditions.

Supporting Details:

  • Company Valuation: Getir's valuation dropped from $11.8 billion (2022) to an estimated $2.5 billion (post-restructuring).
  • Market Exits: Withdrawal from the United Kingdom, Germany, Netherlands, and United States markets occurred recently.
  • Workforce Impact: Tens of thousands of employees reportedly laid off over the past two years as part of company-wide adjustments.
  • Investor Involvement: Mubadala contributed approximately $300 million to Getir's Series E funding round in 2022. Other notable investors include Tiger Global and Sequoia Capital.

The legal proceedings are expected to unfold in the coming months, potentially casting a shadow over Getir's ongoing restructuring and its efforts to regain market stability. The outcome of this $700 million lawsuit between Getir's founders and Mubadala could establish a precedent for investor-founder relations in the fast-paced and high-stakes technology startup ecosystem, particularly for companies undergoing significant financial challenges. Both parties are anticipated to present their cases as the legal process advances.