Abu Dhabi leads $167 million investment in Spanish delivery app

A courier for Spanish on-demand supply app Glovo.

Glovo

Spanish meals supply app Glovo has raised 150 million euros ($167 million) in a contemporary spherical of funding to ramp up hiring and increase internationally.

The financing effort was led by Mubadala, the sovereign wealth fund of Abu Dhabi, and was additionally backed by present traders together with Germany’s Delivery Hero, Swiss funding firm Drake Enterprises and European enterprise capital agency Lakestar, which was an early investor in Spotify.

It lifts four-year-old Glovo’s valuation throughout the $1 billion mark, bringing it into the ranks of Europe’s rising membership of unicorn firms. The agency is now Spain’s second start-up to realize unicorn standing, based on CB Insights, the primary being ride-hailing service Cabify. It speaks to the extent of curiosity from overseas traders in Europe’s tech business, which according to Atomico, had lured in over $34 billion in enterprise capital as of November this yr.

The additional money can be used to assist Glovo develop its workforce, mentioned co-founder and CEO Oscar Pierre, with plans to rent 300 new engineers and builders by mid-2020. The Barcelona-based agency additionally desires to make use of the extra capital to increase into new territories after coming into Poland by way of the acquisition of native operator Pizza Portal. Glovo mentioned that 40 engineers and 50 tech and product consultants can be posted at its new Warsaw workplace.

Glovo’s platform is generally recognized for its takeout and supply service, however the agency additionally presents a spread of different merchandise which might be delivered by its 50,000 couriers “on-demand” — usually in below 30 minutes. Food supply has change into a very crowded market, with a spread of gamers seeking to compete from DoorDash, Postmates and Uber Eats within the U.S. to Deliveroo and Just Eat within the U.Ok.

“When we started the company we believed that the concept of on-demand had the potential to become a very big part of the way people purchase goods and services,” Pierre informed CNBC. “Our vision, from day one, has been to become the ‘everything app’ for city living, giving our customers access to anything they wish to purchase, and then delivering it.”

Glovo’s boss mentioned that groceries was its second-most ordered product class. The agency signed a cope with French retailer Carrefour earlier this yr to supply the latter with quick dwelling supply. Other than groceries, Glovo additionally sells prescription drugs and has an aptly-named “anything” class the place customers can request any merchandise. The agency’s app is on the market in 26 nations throughout Europe, Latin America and Africa.

It hasn’t been that lengthy for the reason that firm final raised fairness financing, with its final fundraising being a 150-million euro funding spherical introduced in April. The rush of enterprise capitalists into fast-growing tech firms has been tested of late with the plummeting share value of Uber and WeWork’s botched preliminary public providing (IPO). Both companies have been stricken by issues over their cash-burning enterprise fashions.

Pierre put to mattress any suggestion that his agency is perhaps operating out of cash. He claimed Glovo had really reached operational profitability in its dwelling market of Spain, although the general enterprise stays lossmaking. As for an IPO, Pierre says he hasn’t given it any consideration. “It’s not a priority for Glovo right now and not something we’re thinking about,” he mentioned.

The information additionally marks an extra drive from the United Arab Emirates into the tech sector. The oil-rich nation has been more and more moving to diversify its financial system, plowing lots of of hundreds of thousands of {dollars} into native start-ups. Despite Abu Dhabi’s wealth fund being the lead investor within the spherical, Glovo’s CEO mentioned there have been no plans to increase into the Middle East. But, he added, “we never say never.”

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