Led by New York-based investment managers Lugard Road Capital and Luxor Capital Group, the latest funding round sees Glovo strengthen its position in the delivery market, and looks set to bolster focus on its quick commerce (q-commerce) services.
The round also saw participation from returning investors, including Delivery Hero, Drake Enterprises and GP Bullhound, and reflects the significant growth potential in the online delivery sector.
The largest ever funding round for a Spanish startup, Barcelona-based Glovo plans to invest in expanding its footprint in the 20 markets in which it currently operates.
With a current base of more than 10 million users, the company will pay particular attention to growing its groceries and retail categories through key local partnerships.
In its biggest cities, Glovo is currently able to provide last-mile delivery within 10 minutes via its network of delivery-only convenience markets (known as dark stores), as the company anticipates a permanent shift in consumer habits towards same-day and instant delivery.
The company currently operates dark stores in cities including Barcelona, Madrid, Lisbon and Milan, and aims to have 200 dark stores by the end of 2021.
To spur on the growth of its groceries category, Glovo will continue to 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.
Earlier this year, Glovo announced a €100 million partnership with Swiss-based real estate firm Stoneweg to grow its network of dark stores, and the hiring of new CTO, Narek Verdian.
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“We’re thrilled to have the continued backing of Luxor Capital Group and all of our existing investors,” said Oscar Pierre, co-founder and CEO of Glovo.
“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, commented: “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.”
