The Spanish startup Glovo, one of the world’s leading multi-category delivery players, announced that it has raised €450M ($530M) in its Series F funding round led by New York-based investment managers Lugard Road Capital and the Luxor Capital Group.
The round also saw participation from returning investors including Delivery Hero, Drake Enterprises and GP Bullhound, and reflects both the significant growth potential in the online delivery sector and the strong demand from existing shareholders to invest in the company.
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 company will also focus on growing its newly-launched Q-Commerce division, which forms a significant part of its strategic commitment to multi-category deliveries in these markets.
Earlier this year Glovo announced a €100M partnership with Swiss-based real estate firm Stoneweg to grow its network of dark stores and the hiring of new CTO, Narek Verdian, who recently served as vice-president of engineering at American Express. Verdian will oversee the expansion of the engineering team from 300 to 500 at Glovo’s Barcelona headquarters and its tech hubs in Madrid and Warsaw.
The focus of the funding for Glovo will centre 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’s already able to provide ultra-fast last-mile delivery within 10 minutes through its network of dark stores, as the company anticipates a permanent shift in consumer habits towards same-day and instant delivery.
PARTNERSHIPS WITH LEADING RETAILERS
To spur on the growth of its groceries category, Glovo will continue to seek strategic partnerships similar to its deals with supermarkets such as Carrefour, Continente and Kaufland, while also investing in its own infrastructure and fulfilment centres. The company currently operates dark stores in cities including Barcelona, Madrid, Lisbon and Milan, and will be opening similar stores in Valencia, Rome, Porto and Bucharest, among others. The company aims to have 200 dark stores by the end of 2021.
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.”