On demand delivery service Glovo has announced that it has raised €150 million (Ksh. 16.993B) in Series D funding led by international venture capital firm Lakestar. The company, which recently launched in Nairobi, will use this funding to bolster its growth within the Sub-Saharan Africa market.
The funding round was led by Lakestar, the 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.
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 Mrs. 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 Mrs. Muhiu She went on to add that Glovo will also invest heavily in growing delivery categories beyond food, including groceries, drinks, gifts and courier.
Last year Glovo raised $134M (Ksh. 13.557B) in Series C funding from Seaya Ventures, Cathay Innovation and Rakuten Capital, and has received funding to date of €285M (Ksh. 32B).
Glovo offers users the convenience of being able to buy anything and have it delivered to their doorstep. Towards this end, the company partners with a wide range of establishments, including restaurants, supermarkets, butcheries, bakeries, and gift shops. Additionally, they have a network of Bike riders to deliver the products purchased. The service is available in in Kenya in Lavington, Kileleshwa, Kilimani, Westlands and UpperHill at the moment. According to the company, plans to underway to expand the service to more neighbourhoods.
Glovo was founded in 2015 in Barcelona and has since then expanded operations to 3 continents i.e. Europe, Africa, and South America. The service is present in over 20 countries and more than 100 cities. Kenya became the 3rd African market for Glovo in 2019, after Morocco and Egypt, that launched last year.