Spanish rapid-delivery startup Glovo has agreed to pay 170 million euros ($208 million) to buy the Balkans units of Germany’s Delivery Hero, it said on Wednesday, accelerating its expansion after it recently raised fresh cash.
The transaction includes the acquisition of Foodpanda in Romania and Bulgaria, Donesi in Serbia, Montenegro, Bosnia and Herzegovina, and Pauza in Croatia. The deals are subject to regulatory approvals, the Barcelona-based company said.
Earlier this month, Glovo had announced the acquisition of Ehrana in Slovenia for an undisclosed amount.
Delivery Hero took its stake in Glovo to 37% after providing 229 million euros out of the 450 million euros raised by the Spanish company in April in what was described as the largest financing round secured by a Spanish start-up.
In late 2020, Glovo sold its Latin American operations to Delivery Hero for up to 230 million euros.
“It’s always been central to our long-term strategy to focus on markets where we see clear opportunities to lead and where we can build a sustainable business,” said Glovo’s co-founder and chief executive Oscar Pierre in a statement referring to the deal in the Balkans.
Glovo delivers everything from food to household supplies to some 10 million users across 20 countries.
The company has seen demand soar during the COVID-19 pandemic, as locked-down customers turned to its quick delivery service.
The deal comes at a time Glovo faces growing regulation in its home market that could affect its business model.
The Spanish government in early May gave food delivery companies three months to convert their couriers into staff workers under a new law, one of the first in Europe regulating gig-economy workers’ rights.
Source: Reuters.com