Glovo, a Spanish delivery app, recently announced that it has raised $121 million in funding from Swiss real estate firm Stoneweg. The capital injection is set to be used to build out a network of delivery-only convenience stores with an aim of providing customers with products within 30 minutes or less. Reports also suggest that Stoneweg will help Glovo by building and refurbishing properties for the company’s expansion.
Overview of Glovo
Glovo is an on-demand delivery service based out of Barcelona, Spain. Founded in 2015, the app connects users with local couriers who pick up and deliver goods from any store or restaurant in their city. It currently operates in over 200 cities across 21 countries in Europe, Latin America, Africa, and Asia.
Funding for Expansion Efforts
The latest funding round was led by Switzerland-based real estate firm Stoneweg and brings Glovo’s total funding to date to more than $400 million after previously raising almost $280 million last year alone. According to reports, the additional capital will be used to expand its operations into new markets as well as build out its network of delivery-only convenience stores.
The funds will also be utilized to improve Glovo’s technology infrastructure and strengthen its logistics capabilities while helping them hire more people on board to support its growth efforts internationally. For example, they plan on increasing their fleet of couriers across more cities while continuing to invest heavily in automation technologies such as machine learning and computer vision.
Rise in Demand for Convenience Items
According to Macarena Munoz Montijano at Bloomberg, demand for convenience items such as groceries has surged 300% since March 2020 due to the pandemic lockdown measures worldwide which have increased demand for online deliveries substantially. This has resulted in companies such as Glovo looking for ways to meet this demand and capitalize on the growing trend by creating delivery-only convenience stores with sub-30-minute delivery times.
The investment from Stoneweg is expected to help Glovo accelerate its global expansion while enabling them to offer quicker deliveries through its network of delivery-only convenience stores.
Furthermore, it will enable them to continue investing heavily in automation technologies which are becoming increasingly important within the online delivery sector due to rising competition among companies trying to tap into the growing market share offered by online convenience items.
Spanish delivery app Glovo raises $121M from Swiss real estate firm Stoneweg to build out delivery-only convenience stores for sub-30 minute delivery times (Macarena Munoz Montijano/Bloomberg)