Glovo closes a historic round by raising 450 million

The home delivery company has managed to raise a total of 450 million euros in its largest financing round to date, led by New York investment managers Lugard Road Capital and Luxor Capital. It has also broken records at the state level, closing the highest figure for a startup in Spain. The round also saw the participation of previous Glovo investors, such as Delivery Hero, Mubadala, Drake Enterprises, and GP Bullhound.

"We are really happy to continue to count on the support of Luxor Capital and all our investors. Over the past few months, we have moved very quickly while always maintaining our vision: that users find everything they are looking for in their city on Glovo," explains the co-founder and CEO of the company, Oscar Pierre.

With this Series F round, Glovo raises the amount captured since its inception to 800 million and reaches, according to Expansión, a valuation of 1,931 million euros, becoming the most valuable new-generation technology company in the country. Now, the Barcelona-based company will prepare to go public within two or three years with the aim of continuing to finance its growth.

The resources obtained must serve to grow in its main markets, strengthen its leadership in the 20 countries where it already operates, and open markets in 15 more countries in the next two years. They must also allow it to continue expanding its Quick Commerce division, which aims to make deliveries of all its products in just ten minutes, and continue expanding its offering, which ranges from supermarkets like Dia and Alcampo to parapharmacies.

Apart from this, Glovo is working on the development of small urban warehouses, which it already has in Barcelona, Madrid, Lisbon, and Milan. Earlier this year, the company announced a 100 million euro agreement with the Swiss Stoneweg to boost a network of this type of facility.

A pending issue for the company led by Pierre is its labor model, which will have to adapt to the new law for the government's riders, which considers them employees, as well as paying outstanding Social Security contributions resulting from the delivery drivers' complaints. Since its creation in 2014, Glovo has not generated profits and has maintained its operations thanks to capital injections.