Turkish on-demand grocery delivery startup Getir announced on Friday that it had raised a $300 million Series C round of funding. The new round was led by Sequoia Capital and existing investor Tiger Global, and comes just months after Getir finalized a $128 million Series B investment round. The company has raised $470 million to date.
Getir is part of the current crop of startups that promise super speedy grocery delivery. Getir operates a number of smaller distribution centers that are set up in different neighborhoods within a city. Users order items via an app and couriers are dispatched to complete deliveries in roughly 10 minutes.
In February, Getir expanded to offer delivery in London, and the company says it will use its new funding to expand into The Netherlands, Germany and France. But it will face competition as it does so, as a number of speedy grocery delivery startups in Europe have received funding recently. In London, Weezy and Jiffy offer similar services. And in Germany, Gorillas just closed a $290 million round last week for its own Euro expansion.
As we covered last week, all of these startups (plus the ones in the U.S. like GoPuff and Fridge No More) are all angling to change the way consumers view grocery shopping. By providing delivery in 10 minutes or less, companies essentially turn groceries into a utility that is available on tap. Shoppers could literally get groceries multiple times a day to fulfill a need or even just on a whim because they want something.
It’s still very early stages for all of these startups however, and it remains to be seen if and how customers will respond to such a service, and how far these types of services can scale. Can speedy delivery only work in dense urban environments? And as more players compete, how many micro-groceries stores does one neighborhood need? Given the rate of funding in the space, I assume we’ll find out pretty fast.