SAWT BEIRUT INTERNATIONAL

| 4 December 2022, Sunday |

Glovo, Spanish company, receives 450 million euros in funding from investors

Glovo, a Spanish delivery app, revealed on Thursday that it had raised an additional 450 million euros ($528 million), believing it to be the largest funding round ever received by a Spanish start-up.

Glovo, headquartered in Barcelona, saw a surge in demand during the COVID-19 pandemic, as customers who were stranded turned to its same-day delivery service for anything from food to toiletries. It currently has a user base of ten million people.

Glovo plans to use the funds to extend its presence in the 20 countries where it currently operates. It will also concentrate on its Q-commerce division, with the intention of increasing ultra-fast delivery throughout the app’s 850 cities.

So-called quick commerce has boomed in the past year as the pandemic put a new premium on ultra-rapid deliveries of food and goods from relatively local stockrooms.

Investors have rushed to get in on the action of delivery apps, but the much-anticipated IPO of Deliveroo on the London Stock Exchange on Wednesday saw shares in the British delivery company plunge by as much as 30%, cutting more than 2 billion pounds off the company’s valuation.

Glovo CEO Oscar Pierre said in a statement, “This investment will allow us to develop in our core markets, accelerate our leadership position in places where we are already very strong, continue to expand our Q-commerce division, and add more creativity to our multi-category offering.”

Glovo has received the latest funding in a new round of Series F financing led by Lugard Road Capital and Luxor Capital Group of New York. The round also included Delivery Hero, Drake Enterprises, and GP Bullhound. All of them have previously invested in Glovo.

The company did not provide an estimate for the company, but the Spanish financial newspaper Expansion claimed that it was priced at 2 billion euros.

($1 = 0.8525 euros)

    Source:
  • Reuters