Getir mulls sale of shopping platform n11 among options, sources say

By Ebru Tuncay

ISTANBUL (Reuters) - Turkish grocery delivery company Getir is considering the sale of online shopping platform n11 among options in discussions with investors on a new road map, two sources close to the matter said.

Getir grew rapidly during the COVID-19 pandemic, attracting high-profile investors and reaching a valuation of $12 billion two years ago as it established operations across Western Europe and in the United States.

But as the pandemic ended and people returned to physical shopping, high profit margins fell, making it difficult to meet costs arising from investments in these markets.

"There are many options on the table being discussed with investors. We cannot say every option discussed will happen. One of them is the sale option for n11," one source told Reuters.

Getir declined to comment on the issue.

In 2022, Getir laid off 14% of its employees in Turkey due to inflation pressures. A year later, it announced its departure from the French, Italian, Spanish and Portuguese markets, limiting its activities to Turkey, Britain, Germany, the Netherlands and the United States.

"A way out is being sought. Options are being evaluated and n11 is one of them," a second source said, adding it was unclear what decision would ultimately be made.

Getir became a partner in n11 in early 2022 before buying the remaining shares from Turkey's Dogus Group and South Korean SK Planet.

A third source, who like the others requested anonymity to discuss private matters, said n11 offices were merged with Getir as part of downsizing and layoffs in recent weeks. "There may be a sale afterwards, or they may continue like this."

Turkish businessman Nazim Salur founded Getir in 2015. Its investors included Mubadala Investment Company, Abu Dhabi Growth Fund (ADG), Alpha Wave Global, Sequoia Capital and Tiger Global.

The first source said that as part of strategic discussions, Getir may consider exiting the United States, where it bought FreshDirect last year but has failed to meet its expansion goal. Getir operates in New York and Chicago.

The company also declined to comment on exiting markets.

German media reported on Wednesday that Getir was close to withdrawing from Germany, a year and a half after it bought Gorillas in a deal worth $1.2 billion.

(Additional reporting by Birsen Altayli and Can Sezer; Writing by Daren Butler; Editing by Jonathan Spicer and Emelia Sithole-Matarise)