MADRID, Apr 1 (Reuters) – Home delivery app Glovo said on Thursday it has raised an additional 450 million euros ($ 528 million) from investors, the largest round of financing ever achieved by a Spanish startup. .
Barcelona-based Glovo has seen demand for home delivery skyrocket during the COVID-19 pandemic as confined customers turned to its express delivery service that offers a wide range of products, from food to toiletries. It currently has about 10 million users.
Glovo said it will use the funds to further expand in the 20 markets in which it operates. It will also focus on its fast trade or “q-commerce” division as part of its goal of increasing ultra-fast deliveries in the 850 cities in which the app operates.
So-called fast trade has seen a boom in the last year, as the pandemic has given new impetus to ultra-fast deliveries of food and goods from relatively local warehouses.
A large number of investors have pounced for shares in delivery apps, but Deliveroo’s long-awaited IPO on the London Stock Exchange on Wednesday saw the British company’s shares plummet as much as 30%, shedding more than 2,000. million pounds of the company’s valuation.
“This investment will allow us to grow in our core markets, accelerate our leadership position in places where we are already very strong, continue to expand our ‘q-commerce’ division and bring more innovation to our multi-category offering,” said the CEO of Glovo, Oscar Pierre, in a statement.
Glovo raised the investment in a new Series F financing round (as one of the stages of financing a ‘startup’ is known) led by New York-based Lugard Road Capital and Luxor Capital Group. Delivery Hero, Drake Enterprises and GP Bullhound also participated in the round. They are all former Glovo investors.
The company has not given an assessment of the business, but the Spanish financial daily Expansión cited a figure of 2 billion euros.
(1 dollar = 0.8525 euros)
(Information from Jessica Jones and Anita Kobylinska; edited by Douglas Busvine and Keith Weir; translated by Darío Fernández at the Gdansk newsroom)