NAIROBI, Kenya, May 7 – Delivery service company Glovo, has today announces a €150 million ($169M) Series D funding round, led by international venture capital firm Lakestar.
The start-up, which recently launched in Nairobi, will use this injection of funding to bolster its growth within the Sub-Saharan Africa market.
Speaking during the announcement of the funding, Priscilla Muhiu, the firm’s Head of Marketing for Sub-Saharan Africa said that the move aims at improving their response to customers. “Glovo is committed to taking its tech capabilities and systems to the next level. We will use this opportunity to grow our team of tech experts to create a smarter and more efficient experience for customers and reduce waiting time for Glovers,” said Muhiu. “We also intend to expand our footprint across Sub-Saharan Africa, with new operations in Ghana, Nigeria and Tanzania,” she added.
Glovo hopes to ride on the rising number of smartphone users in Kenya which stands at 47 million. “Being the latest smartphone-centred business to launch in Kenya, we hope to leverage the high level of smartphone penetration in Kenya to boost our growth,” said Muhiu She went on to add that Glovo will also invest heavily in growing delivery categories beyond food, including groceries, drinks, gifts and courier.
Founded in January 2015 by CEO and co-founder Oscar Pierre, and co-founder Sacha Michaud, Glovo’s growth has been powered by venture capital investment. Launching in a new city every four days on average last year, Glovo now employs over 1,000 people and is quickly becoming the fastest growing delivery player in Latin America and Europe the Middle East and Africa.
This current round of funding led by Lakestar, has roped in technology entrepreneur VC, and Drake, owner of global pizza franchise Papa John’s, with support from new investors; Idinvest Partners, European private equity and venture capital firm, and Korelya Capital, supporting the growth of European start-ups.
In order to become the everything app for cities and meet growing demand, Glovo has will also invest heavily in growing delivery categories beyond food, including laundry, alcohol, pharmacy products and groceries. To accelerate the growth of these categories further, the startup is investing in it groceries vertical, building dark supermarkets; enabling groceries to be delivered to customers within 20 minutes of placing the order.
Dharmash Mistry, Partner at Lakestar , who will be joining the Glovo board, said: “We are excited to invest behind Oscar and the Glovo team. In only 3 years they have built a significant, multi country, next generation, branded last mile express delivery company. The bold ambition to deliver ‘anything anywhere’ in less than 30 minutes will continue to change consumer behaviour around food and grocery delivery, and beyond.”
Last year Glovo raised $134M in Series C from Seaya Ventures, Cathay Innovation and Rakuten Capital, with funding to date of €285M ($322M).