Glovo closes the largest financing round in the history of Spain: 450 million euros to try to stand up to Amazon
Glovo is already one of the most successful startups in the history of Spain. The Barcelona company has closed its series F investment round with a value of 450 million euros, the largest round for a Spanish startup in history.
The US funds Lugar Road Capital and Luxor Capital have led the investment, where other investors such as Delivery Hero, Drake Enterprises, GP Bullhound and Mudabala have also participated.
Ultra-fast deliveries and beefing up beyond feeding
The company has not specified the valuation of this round, but as described TechCrunch, sources close to the operation place a value on Glovo of about 1,700 million euros, considerably above the last valuation of 2019 that placed Glovo a value of 1,000 million euros and a range that only Cabify had reached in the past.
With the 450 million euros raised, Glovo will seek to expand its presence in the 20 markets where it currently operates and “focus on its Q-commerce division as part of its goal of expanding ultra-fast deliveries.” From Glovo they want to strengthen their multi-category offer, which in practice means trying consolidate product delivery beyond the supermarket and food.
“We want to stand up to Amazon with ultra-fast product delivery. We think there is a great business opportunity to explore. We believe that in a few years, restaurant food delivery will be a minority activity at Glovo”, explains Oscar Pierre, founder from Glovo, to The vanguard.
Glovo has 10 million users and in its largest cities such as Barcelona, it already regularly offers ultra-fast last-mile delivery, in 10 minutes, through its network of urban micro warehouses. A distribution model that is being analyzed by local administrations.
Some ‘dark stores’ that the company maintains in Barcelona, Madrid, Lisbon and Milan and that it intends to expand to Valencia, Rome, Porto and Bucharest with the goal of reaching 200 dark stores by the end of 2021. The startup has also reached agreements with supermarkets such as Carrefour, DIA and Alcampo in Spain, or Continente or Kaufland in other countries.
Currently Glovo employs more than 350 engineers in Barcelona and the goal is to double this number. The company will be able to take advantage of this round of financing to face the fees that the Social Security claims considering that their riders are salaried.
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