Glovo raises $528 million in fresh funding as cash fuels the food delivery wars

  • Spanish delivery startup Glovo has raised €450 million ($528 million). 
  • The startup claims the funding is the largest venture round in Spain’s history. 
  • Glovo’s capital raise comes a day after Deliveroo’s difficult London float and a spate of delivery fundraises.
  • See more stories on Insider’s business page.

Delivery startup Glovo has raised a €450 million ($528 million) funding round, describing it as the largest venture round in Spain’s history. 

The Barcelona-based unicorn has now raised more than $1 billion in total funding since it was founded in 2015. 

The company is one of many food-delivery services operating globally, but one that has consciously chosen to target markets off the radar of industry giants like the UK’s Deliveroo and Uber Eats, focusing on areas such as Kenya, Ukraine, and Peru.

Glovo ferries out food, groceries, and items from the pharmacy on demand for consumers who order via its app. It employs a network of gig-economy riders, although its native Spain this month announced new laws that will force firms like Glovo to categorize these riders as employees.

The round follows UK competitor Deliveroo’s poorly received IPO in London yesterday, and a spate of recent delivery startup fundraises including rounds for Coatue-backed Gorillas in Germany and Sequoia-backed Getir out of Turkey. 

Glovo’s latest round was led by Lugard Road Capital and the Luxor Capital Group and also saw participation from existing investors including Delivery Hero, Drake Enterprises and GP Bullhound.

The food-delivery market itself is worth an estimated $35 billion globally — and predicted to hit $365 billion in a decade.

The firm said the investment would help it build out its Q-commerce, or quick-commerce, division which involves superfast delivery.

The firm employs 1,500 people globally.

Data from UBS in 2018 indicated that Glovo was beating several bigger rivals in terms of app downloads in Spain and Italy, and that its share was growing. The company previously suggested that despite a hit from COVID-19 it was growing well through the pandemic. 

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