By Joan Faus
BARCELONA (Reuters) – Spanish fast-delivery start-up Glovo has agreed to pay 170 million euros ($ 208 million) to buy the Balkan units of the German Delivery Hero, he said on Wednesday, stepping up its expansion after recently raising new liquidity.
The transaction includes the acquisition of Foodpanda in Romania and Bulgaria, Donesi in Serbia, Montenegro, Bosnia and Herzegovina and Pauza in Croatia. The agreements are subject to regulatory approvals, the Barcelona-based company said.
Earlier this month, Glovo announced the acquisition of Ehrana in Slovenia for an undisclosed amount.
Delivery Hero raised its stake in Glovo to 37% after providing 229 million euros of the 450 million euros raised by the Spanish company in April in what has been described as the biggest guaranteed funding round by a Spanish start-up.
At the end of 2020, Glovo sold its Latin American business to Delivery Hero for up to 230 million euros.
“It has always been at the heart of 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 co-founder and CEO Oscar Pierre, in a press release referring to the Balkans agreement.
Glovo supplies everything from food to household items to some 10 million users in 20 countries.
The company has seen demand soar during the COVID-19 pandemic, as stranded customers have turned to its rapid delivery service.
The deal comes at a time when Glovo faces increasing regulation in its home market that could affect its business model.
In early May, the Spanish government gave food delivery companies three months to convert their couriers into employees under a new law, one of the first in Europe to regulate workers’ rights in the saving odd jobs. [L8N2MY3DU]
(1 USD = 0.8158 euros)
(Reporting by Joan Faus; Editing by Inti Landauro and Keith Weir)