ENTERPRISE 101

Glovo to Accelerate Growth With Sh16.7bn Cash Injection

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Glovo raises more capital www.businesstoday.co.ke
A Glovo rider at work. The company has reported increased sales and cashless payments during the COVID-19 period.
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Glovo, the on-demand delivery firm, in December, announced €150million ($167 million, Ksh16.7 billion)) in Series E funding. This investment has been led by Mubadala, with support from previous investors Drake Enterprises, Idinvest and Lakestar.

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

Glovo has secured its status as a unicorn, making it only the second privately held business in Spain to surpass a $1 billion (Ksh100 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.

Instant delivery

“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,” Mr Pierre said.

“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.”

Glovo recently entered the Polish market in a €35million 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, Glovo says it 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.

Tech market

To spur growth of its groceries category, Glovo will continue to seek strategic partnerships, similar to its deal with Carrefour.

“In June 2018, Mubadala launched a €400 million fund to invest in leading European technology companies like Glovo,” Frederic Lardieg, Partner in the Ventures Europe team at Mubadala Capital, said.

“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.”

Next >> How Man Who Invested Less Than 100 Shillings Earned Sh10 Million

Written by
BT Correspondent

editor [at] businesstoday.co.ke

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