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Glovo Takes Over Delivery Hero’s Balkan Business For $207 Million

Glovo Takes Over Delivery Hero’s Balkan Business For $207 Million

May 26, 2021 at 06:27PM
by PYMNTS

Delivery platform Delivery Hero announced on Wednesday (May 26) that Glovo will acquire the company’s operations in the Balkans.

“Delivery Hero has built a clear leading business in the Balkan region in the last couple of years,” said Nikas Ostberg, CEO of the German-based company. “However, with a lot of operational priorities on our plate, we believe Glovo would be better positioned to continue building an amazing experience for our customers in this region.”

The $207 million (170 million euro) deal will see the Spanish courier/delivery service Glovo take over Delivery Hero’s businesses in Bosnia-Herzegovina, Bulgaria, Montenegro, Romania and Serbia. Glovo will also acquire pieces of Delivery Hero’s Croatian operations.

“Present in all six countries and already holding a very strong position, Glovo is well-placed to continue investing into improved customer experience, long-term and sustainable operations, and further build-out [of] the businesses locally,” Delivery Hero said in a news release.

The transactions are expected to close in the next few weeks in all of the countries except Romania, which is expected to close by the first quarter of next year, pending fulfillment of the conditions precedent and regulatory approvals.

Glovo CEO Oscar Pierre said the region “has really embraced on-demand delivery platforms, and we’re very excited to be strengthening our presence and increasing our footprint in countries that continue to show enormous potential for growth.”

Last month, Glovo announced it had raised $530 million in a Series F funding round that counted Delivery Hero among its investors. Pierre said at the time that the cash would help Glovo “double down in our core markets.”

That news was notable for being the largest amount ever raised by a Spanish startup, but as PYMNTS noted recently, it’s not the only q-commerce (Q for quick) company that’s breaking records. A few weeks before Glovo’s announcement, the German grocery delivery startup Gorillas raised $288 million in Series B funding, giving it a billionaire status nine months after its launch. That’s the fastest launch-to-unicorn trajectory in German history.