Spanish delivery firm Glovo has raised an additional €150 million (Sh16.7 billion) as it seeks to scale up its business in Africa, Europe and Latin America.
The company said the new funding from Abu Dhabi state investor Mubadala and institutional investors Drake Enterprises, Idinvest and Lakestar has pushed its valuation to Sh100 billion.
The new capital raise follows the $169 million (Sh17 billion) funding it received in May.
Glovo uses independent couriers to deliver products to customers, who place orders through a smartphone app that charges a maximum delivery fee of Sh100 in Kenya.
The firm started its pilot programme in Kenya in November last year before formally launching in January, and has enlisted in more than 120 riders who make deliveries to various clients in Nairobi.
It came into a market that is increasingly receptive to mobile app-based delivery and transport solutions.
Taxi-hailing apps have become popular in Kenya, and the service is now extending to shuttles that operate on scheduled runs across various routes in the city.
Kenyans are also increasingly taking to online orders for food and groceries, helped by linkages between the leading restaurant and fast-food chains with the app-based logistics firms.
“Following the close of its most recent investment round the company has secured its status as a unicorn, making it only the second privately held business in Spain to surpass a $1 billion (Sh100 billion) valuation,” Glovo said in a statement.
The new capital will be used to expand the company’s technology team to improve its services including by reducing the waiting time for couriers and customers.
Glovo will also open more stores and kitchens. The multinational says it is now seeking closer partnerships with retailers using the model to expand its grocery offering across its markets.
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