Spanish on-demand delivery company Glovo has landed a €150 million funding round led by Lakestar, with participation from Drake, Korelya, and Idinvest, according to a report by VentureBeat. At the same time, however, the startup also announced that it's pulling out from two of its markets, Chile and Egypt.
Founded in 2015, Glovo has built a rapidly expanding on-demand delivery service that's often used by customers to order takeaway food but isn't limited to that. In most of the markets where the company is active food delivery accounts for up to 60 percent of all orders, MENAbytes reports.
Glovo plans to use the capital injection to hire more engineers for its team and develop new on-demand services to become “the everything app for city living,” it stated in a press release. The company's CEO Oscar Pierre told VentureBeat that Glovo isn't prioritising the US market but is rather focussed on Europe, Africa, and Latin America.
The startup has been active on the Chilean market for some two years before deciding to pull the plug. According to the report, the reason for the decision was that Glovo hasn't been able to retain its market share, for which it blames the lack of funding.
In a similar development, Glovo has abruptly shut down its operations in Egypt, effective at 23:59 local time today. The startup has been active in the country — namely in Cairo and Alexandria — for less than a year. No information about why the company has decided to pull out of the country is available at the moment.
We've reached out to Glovo for a comment and will update this story when we hear back.