Glovo to use $167 million in new funding to expand global technology team

Glovo , the on-demand delivery platform, has announced €150 million ($167 million) in Series E funding. The latest round of investment is being led by Mubadala , with further support from previous investors Drake Enterprises , Idinvest and Lakestar.

Following the close of its most recent investment round, the company has become the second privately held business in Spain to surpass a $1 billion valuation.

The Barcelona-based start-up – which provides a technology platform to deliver everything from food to groceries and drinks – has consolidated its position within its markets, which include Africa, Europe and Latin America. It’s among the top two on-demand players in 24 of the 26 countries in which it operates.

As Glovo scales globally, it’s committed to taking its engineering capabilities and technology systems to the next level. The company recently entered the Polish market in a €35 million deal that established a second technology hub in Warsaw. It plans to expand its global tech team by hiring 300 additional engineers by mid-2020, with 40 dedicated engineers and 50 tech and product experts to be based in its new Warsaw office.

By channelling the new investment towards the expansion of its technology team, the start-up will continue to strengthen its tech offering by further streamlining its user experience, reducing the waiting time for couriers and customers, and opening new dark stores and cook rooms.

Glovo will continue to innovate in the sector and build out its multi-category offerings, delivering groceries and other everyday items. To spur on the growth of its groceries category, Glovo will continue to seek strategic partnerships, similar to its deal with Carrefour.

Oscar Pierre, co-founder and CEO of Glovo, said: “We’re very pleased to welcome Mubadala as an investor, as well as to further strengthen our position within the industry.

“To have achieved unicorn status is something truly exciting and a testament to the talent within the company, and their determination to keep innovating and disrupting the on-demand delivery space. Despite our rapid growth and new status, we still have the same vision we’ve always had: to make everything within the city instantly available to our customers.”

Frederic Lardieg, Partner in the Ventures Europe team at Mubadala Capital, said: “In June 2018, Mubadala launched a €400 million fund to invest in leading European technology companies like Glovo. Our investment is a testament to our commitment to the European tech market and we are excited to lead this Series E funding round to enable Glovo to grow their team and support the expansion of their offering.”

Abu Dhabi-based Mubadala Investment is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for its shareholder, the government of Abu Dhabi. Mubadala’s US $229 billion portfolio spans five continents with interests in multiple sectors including aerospace, ICT, semiconductors, metals and mining, renewable energy, oil and gas, petrochemicals, utilities, healthcare, real estate, pharmaceuticals and medical technology, agribusiness and a global portfolio of financial holdings across all asset classes. Mubadala has offices in Rio de Janeiro, Moscow, New York and San Francisco, with a joint venture in Hong Kong.


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