Delivery firm Glovo raises Sh17 billion for expansion

Motorbike rider Eliud Castine, Glovo Head of Marketing for Sub-Saharan Africa Priscilla Muhiu and Lillian Wangechi go through features of the Glovo mobile application. (Photo, File)

Glovo, a global delivery firm, has raised Sh17 billion in its fourth round of financing to partly fund its Africa expansion and grow its delivery categories.

The start-up, which launched in Kenya in January, will use the funding to bolster its growth within the Sub-Saharan Africa market.

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.

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.

Mrs Muhiu added that Glovo will also invest heavily in growing delivery categories beyond food, including groceries, drinks, gifts and courier.

Launching in a new city every four days on average last year, Glovo now employs over 1,000 people and is quickly becoming the fastest growing delivery player in Latin America and EMEA.

In Kenya, the firm has recruited more than 120 riders for Nairobi deliveries.

The firm intends to expand its footprint across Sub-Saharan Africa, with new operations in Ghana, Nigeria and Tanzania.

Founded in January 2015 by CEO and co-founder Oscar Pierre, and co-founder Sacha Michaud, Glovo’s growth has been powered by venture capital investment.

The fourth financing round was led by Lakestar, the technology entrepreneur VC, and Drake, owner of global pizza franchise Papa John’s.

Others include European private equity firm Idinvest Partners and Korelya Capital.

The company has so far raised Sh32.5 billion (USD322 million) with last year’s third round of investing attracting Sh13.5 billion (USD134 million) from VC and PE firms.