Delivery Hero announced on Friday that it has signed an agreement to acquire an additional 39.4% stake in Spanish food delivery app Glovo, making Delivery Hero the majority shareholder of Glovo after closing. With the acquisition, the company holds approximately 44% shares in Glovo on a non-diluted basis.
“The Delivery Hero team has admired and supported Glovo for many years. They have been frontrunners in the industry by offering a multi-vertical service from the start. Their product focus and fast execution have given them a leading position in 16 out of 25 markets, despite having launched a number of years later than their peers. We will continue to invest in Glovo’s team and product, and see many opportunities to further enhance their operations with our resources and expertise.” said Niklas Östberg, CEO and Co-Founder of Delivery Hero.
In October, Delivery Hero had announced that it acquired a minority stake in the Berlin-based on-demand grocery delivery company Gorillas, investing $234 million.
Spanish food delivery app Glovo raised 450 million euros ($528 million) in April in a Series F funding round led by Lugard Road Capital and Luxor Capital Group. The company said in a joint statement that it has a run-rate of approximately EUR 3 billion in GTV with 80% organic growth rate in 2021 and EUR 800 million in revenue.
“I started Glovo in 2015 right after college, and I find it incredible how technology can have so much impact in such little time. We’ve changed how millions of users get their local products and manage their time in a city. We’re creating a new online opportunity for local merchants and providing earning opportunities to couriers working with our platform. With the markets we cover today, we can serve a total population of more than 700 million people. I believe our potential is untapped, and I’m happy to have found a partner that matches our ambition, culture and will keep supporting this adventure we’ve embarked on to drive innovation further, strengthen our multi-category offering and create additional value for all our stakeholders, and the industry.” said Oscar Pierre, CEO of Glovo.
The transaction is expected to close in the second quarter of 2022, subject to obtaining relevant regulatory approvals. After closing, Glovo will continue operations with their existing brand and platform under their current management team.