News and Analysis
FreshDirect lines up rescue funding
- Rachel Butt
•1 min read
FreshDirect is set to get some rescue financing from its parent company, Getir, to help support its operational needs, according to 9fin sources.
Getir is raising fresh cash from Abu Dhabi’s wealth fund and existing investor Mubadala Investment Company, and will funnel some of those funds to FreshDirect, sources said.
As part of the proposed restructuring, Mubadala is injecting $250m into Getir and slated to take majority control of the company’s Turkish grocery operations, according to the FT. Meanwhile, Getir's founders will hold the controlling stake in a separate entity comprising other assets, including FreshDirect.
FreshDirect has been seeking funding with help of AlixPartners, Kirkland & Ellis and Solomon Partners, amid fierce competition in the grocery delivery space and inflationary pressures upending American consumers’ habits.
Representatives at FreshDirect, Getir, Mubadala, AlixPartners and K&E didn’t respond to requests for comment. Solomon declined to comment.
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