Delivery Hero inks deal to become Glovo majority shareholder
German food delivery venture Delivery Hero is set to acquire a 39.4% stake in Spanish quick commerce startup Glovo.
It currently holds around 43.8% in Glovo shares on a non-diluted basis.
The transaction will value Glovo at Euro 2.3 billion on a fully diluted and debt free basis before certain adjustments.
Delivery Hero will also provide a back-stop financing of up to approximately Euro 250 million to Glovo in several tranches.
Glovo will continue to operate under its existing brand and platform and current management team.
Founded in Barcelona in 2015, the venture operates in 25 countries across Europe, Central Asia and Africa.
Its app connects users with restaurants, grocery chains, pharmacies and retail stores, and also includes an "anything" category that allows users to order whatever they want in their city.
"With the markets we cover today, we can serve a total population of more than 700 million people,” says Oscar Pierre, CEO at Glovo.
“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."
"Finishing the year on a high. Very excited to announce Glovo joining forces with Delivery Hero,” Niklas Östberg, Co-Founder and CEO, Delivery Hero, said in a Linkedin post.
“Worked with the founder team since our investment Oct’2018. They have built the coolest app and clear leadership in almost all their markets.”
He added: "I’ve been working with the team since our 2018 investment at €210 million pre-money valuation. Today they generate €3 billion GMV. We have admired their achievements and increased our stake over time to hold 43% prior to today’s announcement.”
“They started only in 2015 as a multi-vertical play from the start. Thanks to superior product and service obsession they have won the hearts of the customers and are today clear lead in Spain, Eastern Europe, CIS and Africa.”
He concluded: “Together Glovo+DH now operate over 70 countries and cover almost 2.2 billion people. A long runway to grow.”
