BARCELONA based multi-category delivery company Glovo has raised €450 million in a funding round led by New York-based investment managers Lugard Road Capital and the Luxor Capital Group.
Following this latest funding round, the largest in history for a Spanish start up, Glovo will invest in expanding its footprint in the 20 markets in which it currently operates.
The company will also focus on growing its newly-launched Q-Commerce division, which forms a significant part of its strategic commitment to multi-category deliveries in these markets and specialises in ultra-fast delivery.
It is one of the leaders of the so-called gig economy which is based on flexible, temporary, or freelance jobs, often involving connecting with clients or customers through an online platform.
So confident are the owners of Glovo in its future that they have allocated €100 million for the creation of more dark stores (which are often laid out like supermarkets but are not open to the public).
It will also invest some of the latest funding into improving facilities in its Barcelona HQ as well as in the tech hubs in Madrid and Warsaw.
The company, which has a strong base of more than 10 million users is paying particular attention to growing its groceries and retail categories through key local partnerships and in its biggest cities, it’s already able to provide ultra-fast last-mile delivery within 10 minutes.
To spur on the growth of its groceries category, Glovo will seek strategic partnerships similar to its deals with supermarkets such as Carrefour, Continente, and Kaufland, while also investing in its own infrastructure and fulfilment centres.
The company currently operates dark stores in cities including Barcelona, Madrid, Lisbon and Milan, and will be opening similar stores in Valencia, Rome, Porto and Bucharest, among others.
This growth compares admirably with the situation for Deliveroo which recently launched shares on the London Stock Exchange but took an immediate hit as their value dropped by some 30 per cent and investors lost more than €2 billion.
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.”