go look for, the Turkey-based startup that has built a 7.5 billion dollars in business a mobile application that allows consumers to shop and have them delivered in minutes, has grown its business so far organically: by targeting urban markets across Europe (and soon the United States ) where it disrupts the well-stocked convenience store with service that needs even less effort and time for the average shopper. Now he is changing that strategy with his first acquisition to enter three other countries.
The company acquires Block, another “instant delivery” grocery service based in Barcelona. Financial information for the deal is not being disclosed, but from what I understand, Blok (formerly known as Huvi Technologies) was primed, fairly new and small (launched only in February 2021) and was already shopping.
Founded by Vishal Verma, Hunab Moreno and Varun Kapoor, Blok is active in Spain and Italy, where its main markets were Madrid, Barcelona and Milan. Portugal were on their roadmap before Getir, and they’ll be launching there soon as well. More than 120 employees will join Getir as part of the operation.
Getir has been around since 2015 and is profitable in Turkey on a mix of services that started with its fast delivery but has since spread to other categories like wider grocery options (GetirMore, with longer delivery times ), restaurant delivery (GetirFood), local delivery companies (GetirLocals), and… water delivery (GetirWater).
This gave Getir the momentum he is now using to expand his flagship model of fast food store to other markets like the UK – I see his mopeds in my neighborhood in London all time – the Netherlands, and Paris and Berlin. the hundreds of millions he raised this year (Getir has raised around $ 1 billion in total now) will also be used to bring the company to the US market, where it will face local rivals in the same space, such as GoPuff.
But while he may be one of the first and perhaps the best capitalized actors, Getir is by no means the only actor of his genre.
The European market is currently teeming with startups that are building services around the same basic principles of super-fast delivery across an assortment of around 1,500 products – usually much smaller than what you might find in a grocery store (17,000 is a normal number there), and closer to what you might get in the kind of small, quick-stop market that exists in every city center in Europe.
These startups, which include good, Gorillas, Glovo, Zapp, I knew, Cajoo, Weezy and many others have collectively raised hundreds of millions of dollars – but still less than $ 2 billion, in my opinion, Getir CEO and co-founder Nazim Salur – to grow their operations.
The adoption has been quite enthusiastic, in part fueled by the pandemic and the fact that many people are living under stay-at-home orders, or simply wanting to stay out of public places to minimize the spread of Covid-19; but also fueled in part by a good pull from millennial consumers and other young people, who have really gotten into the habit of using their mobiles for all practical tasks, which turn into leisure activities when in use. become applications.
Before Covid, Getir was growing triple per year, with a few years, like 2017, the company quintuple, Salur said. “During Covid we also increased by 5x but without that it would have been 4x. It has accelerated our growth but Covid is not the main reason people use us. This is mainly because we are a great convenience. It means we can grow. In Turkey, life has returned to normal, but every month we are still growing. “
Yet is it a large enough market for all of these players? We’ve already heard of at least one struggling to raise more to compete – capital is key, given the balance of logistics and delivery, dark stores to store items, have them items themselves for sale, not to mention stiff competition – and therefore looking for a buyer.
Against this background, it might not come as a surprise to learn that Blok had not raised any notable funding himself and although he had a technology and a team of people in place, he was ready to sell. less than six months after its launch.
“We are very pleased to join the pioneers of super-fast delivery in achieving our common goal of leading the on-demand grocery market in Southern Europe,” Verma de Block said in a statement. “This acquisition allows us to leverage Getir’s know-how, relationships and technology in the industry, while combining them with our world-class team and execution capabilities to create a formidable leader in this part. of the world. All of our launches in Spain and Italy have been very well received and we look forward to stepping up our efforts alongside Getir.
But despite this fairly obvious picture of the consolidation going on, Getir is not going to embark on consolidating all of this, at least not yet.
“Getir will not become an acquisition company, acquiring one after the other. It’s not the way we operate, ”said Salur, who co-founded the company with Serkan Borancili and Tuncay Tutek, in an interview. “But it’s a free market and if there’s a good reason, a good solid reason, we might consider it. We won’t go after ten different companies in this world, but if the right opportunity presents itself, we will talk to people.