Glovo, a multi-category delivery platform, has announced that it has raised €450 million ($531 million or Kshs 58 billion) in its Series F funding round led by New York-based investment managers Lugard Road Capital and the Luxor Capital Group.
Speaking during the announcement of the funding, Priscilla Muhiu, the company’s GM, said that the move aims at improving their customer’s experience. “Glovo is committed to taking its tech capabilities and systems to the next level. We will use this opportunity to create a smarter and more efficient experience for customers and riders as we aim to reduce delivery time,” said Ms. Muhiu.
“As of April 1, 2021, Glovo Kenya has reduced its minimum delivery prices for food by 50% to Kshs 50 and groceries by 18% to Kshs 165. The shift in delivery prices is aimed at having the app accessible to as many customers as possible,” said Ms. Muhiu.
Following this latest funding round, the largest in history for a Spanish startup, Glovo will invest in expanding its footprint in the 20 markets in which it currently operates. The focus of the funding for Glovo will center around its Q-Commerce division and deepening its unique multi-category offerings in all the markets in which it operates. The company, which has a strong base of more than 10 million users and a marketplace of premier partners, is paying particular attention to growing its groceries and retail categories through key local partnerships. In its biggest cities, it is already able to provide ultra-fast last-mile delivery within 10 minutes, as the company anticipates a permanent shift in consumer habits towards same-day and instant delivery. To spur on the growth of its grocery category, Glovo will continue to seek strategic partnerships similar to its deals with supermarkets such as Carrefour and Naivas.
Oscar Pierre, Co-founder and CEO of Glovo, said: “We’re thrilled to have the continued backing of Luxor Capital Group and all of our existing investors. Over the last few months, we’ve moved very, very quickly but our vision remains unchanged. This investment will allow us to double-down in our core markets, accelerate our leadership position in places where we are already very strong and continue to expand our excellent Q-Commerce division, as well as bring new innovations to our unique multi-category offering to extend more choice to our customers.”
Jonathan Green, Founder and Portfolio Manager at Lugard Road Capital, said: “Our investment in Glovo reflects our commitment to a company and leadership team that continues to innovate and disrupt in the on-demand delivery space. As a long-term investor in Glovo, we are excited to watch the company continue to delight its customers through its unique multi-category offering, amidst an enormous market opportunity in both existing and new geographies.”
Glovo is a multi-category delivery app and one of the world’s leading delivery platforms. Founded in Barcelona in 2015, it operates in Southern Europe and Eastern Europe, Middle East and Africa (EEMEA) regions. The app connects users with restaurants, grocery chains, pharmacies, and retail stores, and also includes an “anything” category that allows users to order whatever they want in their city.
Lakestar is one of Europe’s leading venture capital firms investing in technology companies led by exceptional entrepreneurs. Early investments included Skype, Spotify, Facebook and Airbnb. Since raising its first fund in 2013, Lakestar manages an aggregated volume of EUR 1bn across three early-stage funds, and more recently a growth fund. Lakestar has expanded and broadened their portfolio, with more recent investments in Harry’s, Opendoor, GoEuro, FiveAI and Revolut. Lakestar has presence in Berlin, Zurich and London.