Yahoo Finance Getir’s Management Crisis Subsides as CEO Agrees to Board Vote
(Bloomberg) -- Nazim Salur, founder and chief executive officer of Turkish grocery delivery company Getir, has agreed with investors to convene an annual general assembly and vote on a new board, as the two sides work to move past an acrimonious management feud, according to people with direct knowledge of the matter.
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As a part of the agreement and after changes to the board, Salur may have a different role at the company but that hasn’t been determined yet, the people said, asking not to be named discussing internal deliberations. In return, investors are expected to release additional funding to support the company, they said.
Abu Dhabi’s wealth fund, known as Mubadala, is Getir’s biggest shareholder and demanded in April that additional funding be conditional upon changes to the board and a revamp of senior management. Mubadala and Getir declined to comment for this story. Salur wasn’t immediately available for comment via a spokesperson.
Tension between the two sides had reached a head in May following Salur’s dismissal of an executive in charge of strategy. But the infighting preceded that, with Getir’s foreign investors pushing management to downsize international operations, focus on Turkey, the company’s home and largest market, and reduce cash burn.
In April, Getir announced that it was halting service in the UK, Netherlands, Germany and the US, where it also owns delivery service FreshDirect. It said FreshDirect would continue its operations.
Even as the company struggled, Mubadala, along with other investors, agreed to provide as much as $200 million in additional funding, Bloomberg News reported last month, with that amount split into tranches and full disbursal contingent on Getir meeting certain targets. Of the total, $90 million had already been paid so far.
As pandemic-era lockdowns eased and costs rose, Getir’s valuation fell from $11.8 billion two years ago to $2.5 billion as of September. Other investors include tech-investment firms Sequoia Capital and Tiger Global, and former Sequoia Capital partner Michael Moritz.
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