Spanish delivery firm Glovo has raised Sh17 billion ($169 million) in new funding that will partly go towards growing its African footprint and expanding its delivery portfolio.
The firm, which formally launched its operations in Kenya in January, says it will use the additional capital from its fourth round of fundraising to expand its delivery categories beyond food to include groceries, drinks, gifts, laundry, pharmacy products and courier services.
The firm uses independent couriers to deliver products to customers, who place orders through a smartphone app which charges a maximum delivery fee of Sh100.
“We will use this opportunity to grow our team of tech experts to create a smarter and more efficient experience for customers,” said Glovo head of marketing for sub-Saharan Africa Priscilla Muhiu.
“We also intend to expand our footprint across sub-Saharan Africa, with new operations in Ghana, Nigeria and Tanzania.”
Globally, the funds will be used to set up stores for popular goods to enhance delivery times, and kitchens designed to help partners cater to customer food orders more efficiently.
The latest financing round was led by European venture capital firm Lakestar and Drake which operates a franchise of US pizza firm Papa Johns in Spain and Chile.
Others include European PE firm Idinvest Partners and VC firm Korelya Capital.
Glovo’s total funds raised thus far stand at Sh32.5 billion ($322 million). Last year, the firm raised Sh13.5 billion ($134 million) from VC and PE firms in its third round of fundraising.
The firm started its pilot programme in Kenya last November before formally launching in January, and has enlisted in more than 120 riders who make deliveries to various clients across Nairobi.