BUSINESS

Glovo Secures Ksh58B Funding, Slashes Minimum Delivery Prices by 50%

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A Glovo rider pictured in Nairobi. The on-demand delivery service has secured Ksh58 billion in funding.
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Glovo one of the world’s leading multi-category delivery players, today announced that it has raised (€450M) 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 General Manager, 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 1st April 2021, Glovo Kenya has reduced its minimum delivery prices for food by 50% to KES 50 and groceries by 18% to KES 165 this shift in delivery prices is aimed at having the app accessible to as many customers as possible,” she further noted.

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.

A Glovo rider. The firm has reduced its minimum delivery prices for food by 50% to KES 50.
A Glovo rider. The firm has reduced its minimum delivery prices for food by 50% to KES 50.

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.

READ>>>>>Uber Faces Off With Home-Grown Apps After Launching in Nakuru

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.”

READ ALSO>>>>>Users to Get a Taste of Glovo’s Subscription App For Free in December

Written by
BUSINESS TODAY -

editor [at] businesstoday.co.ke

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