Getir Co-Founders Sue Mubadala for $700M Over Asset Breakup Losses

The founders of Turkish food delivery giant Getir have launched a major legal battle against Abu Dhabi's Mubadala Investment Company, filing a $700 million lawsuit in London that alleges the sovereign wealth fund's actions led to significant financial losses during the breakup of Getir's assets.

The lawsuit, filed by co-founders Nazim Salur and Serkan Borançılı, centers on Mubadala's involvement in Getir's rapid expansion and subsequent contraction. Getir, which pioneered the "quick commerce" model of ultra-fast grocery delivery, expanded aggressively across Europe and beyond before being forced to retreat from many markets amid mounting losses.

According to court documents, the founders claim Mubadala's strategic decisions and pressure to scale contributed to Getir's financial difficulties. The lawsuit alleges that Mubadala's actions during the restructuring process resulted in substantial losses for the company's founders and early investors.

Getir's rise and fall represents one of the most dramatic stories in the quick commerce sector. The company raised billions in funding at peak valuations exceeding $12 billion, promising delivery of groceries and essentials within minutes. However, the business model proved unsustainable in many markets, leading to a series of retreats and asset sales.

The legal action comes as Mubadala has been involved in various restructuring efforts across its portfolio companies. The fund, which manages over $200 billion in assets, has faced scrutiny over its investment strategies in several high-profile cases.

Industry analysts note that the lawsuit highlights the tensions that can arise between startup founders and their investors during periods of financial stress. "This case underscores the complex dynamics between founders and sovereign wealth funds, particularly when aggressive growth strategies lead to market corrections," said one venture capital analyst.

The timing of the lawsuit is particularly notable given the current state of the quick commerce sector. While Getir has scaled back significantly, other players in the space continue to face challenges in achieving profitability. The case could have broader implications for how sovereign wealth funds structure their investments in high-growth tech companies.

Legal experts suggest the case may hinge on the specific terms of Mubadala's investment agreements and the extent to which the fund influenced Getir's strategic decisions. "Sovereign wealth funds often take active roles in their portfolio companies, but the legal boundaries of that involvement can be complex," noted a London-based corporate lawyer.

The lawsuit also raises questions about the sustainability of the quick commerce model that Getir helped popularize. While the concept of ultra-fast delivery captured investor imagination and consumer attention, many companies in the space have struggled to achieve unit economics that support long-term viability.

Getir's experience mirrors that of other rapid delivery startups that expanded quickly during the pandemic before facing the realities of high operational costs and intense competition. The company's retreat from markets like the UK and the Netherlands marked a significant reversal for what was once considered one of Europe's most promising startups.

As the case proceeds through the London courts, it will likely attract significant attention from the investment community, particularly those involved in the quick commerce and food delivery sectors. The outcome could influence how sovereign wealth funds approach their investments in high-growth technology companies and how they manage relationships with founders during periods of financial difficulty.

The legal battle also comes at a time when Mubadala is facing increased scrutiny over its investment strategies and the performance of its portfolio companies. The fund has been working to diversify its investments beyond traditional energy sectors, making high-profile bets in technology and other growth areas.

For Getir's founders, the lawsuit represents an attempt to recoup losses from what was once one of Turkey's most valuable startups. The case highlights the personal and financial stakes involved when high-flying startups face market corrections and the complex legal relationships between founders, investors, and sovereign wealth funds.

The London court will now need to examine the detailed allegations and evidence presented by both sides, potentially setting precedents for similar cases involving sovereign wealth fund investments in the technology sector.