Glovo, a Spain-based on-demand delivery service backed by corporates AmRest, Drake, La Caixa, Delivery Hero and Rakuten, has held early discussions about funding and a potential acquisition, Bloomberg reported on Tuesday.
Internet and telecommunications group SoftBank has expressed interest in making an equity investment in the company, and Glovo has spoken to food delivery platform Deliveroo and Uber, the on-demand ride provider that owns food delivery service Uber Eats, about an acquisition.
The discussions with Uber and Deliveroo have been “on and off,” according to the report, which did not reveal details of potential valuations. The companies each approached Glovo, which is not thought to be actively seeking a buyer, and which may seek regional partnerships rather than an outright sale.
Founded in 2015, Glovo operates an on-demand food and parcel delivery service. Items are transported through a network of independent, licensed couriers, who are also able to purchase and deliver goods on the customers’ behalf that are not explicitly for sale on the platform.
Rumours in April this year suggested Glovo was considering an initial public offering as soon as 2020. It was reportedly valued at $950m in its last round, a $168m series D led by Lakestar and backed by Drake, a Spanish and Latin American franchisee of pizza chain Papa John’s, as well as Korelya Capital and Idinvest Partners, in May 2019.
E-commerce firm Rakuten, restaurant group AmRest, Seaya Ventures, Cathay Innovation, Idinvest Partners and GR Capital had supplied $134m in series C funding for Glovo in July 2018.
Food delivery service Delivery Hero revealed a €51m ($59.2m) investment in the company in early August 2018, though it is unclear whether that investment formed part of the total announced in July.
Rakuten subsidiary Rakuten Capital and Cathay Innovation co-led Glovo’s $35m series B round in 2017, with participation from financial services firm La Caixa’s venture capital arm, Caixa Capital Risc, in addition to Seaya, Bonsai Venture Capital and Entreé Capital.
Caixa Capital Risc, Seaya, Entreé Capital, Bonsai, Antai Venture Builder, Cube Investments and assorted angel investors had already provided a total of $7.7m in funding for the company across two rounds in 2015 and 2016.
