Glovo acquires

As it became known to AIN.UA from its own sources in the market, the Spanish unicorn Glovo is preparing to acquire the Ukrainian food delivery service

  • According to AIN.UA data, the purchase price is in the range of $60 million to $80 million.
  • The parties have been preparing for the deal for several months. The editorial staff of AIN.UA first learned about potential negotiations back in the summer of 2021, but then there were no details. When asked by the editors of AIN.UA, said that initially the company considered the possibility of raising investments. Apparently, Glovo’s proposal seemed more attractive.

The financial details of the deal

The parties have not commented on the deal.

According to AIN.UA calculations, the revenue of in 2020 was $85 million, and the plan for 2021 is $128 million. According to two sources of AIN.UA, such companies are usually acquired at a price equal to 0.5-1 revenue. In Ukraine, due to the peculiarities of the market, the first option is more common — 0.5 of the revenues. Also, such companies are bought by the principle of calculation of revenues “one specific month * 12.” Based on this and the fact that the company continues to grow by tens of percent annually, the valuation of can range from $60 million to $80 million.

Another source of AIN.UA believes that the price range is lower — from $50 million to $70 million.

Interestingly, in 2020, raised €5 million in investments. At that time, the company’s valuation was not reported, but as we found out now, it was $40 million.

Reasons for selling

The parties have not commented on the details and causes of the acquisition. The editor of AIN.UA collected the opinions of several people involved in the deal and now explains the reason for this decision.

Despite the rapid growth, is still a business that requires some extra investment. According to TechCrunch, the company has officially raised about $9 million, but its lead investor CIG reported that they invested almost $15 million during the last few years. It is caused by constant additional financing. For CIG, which is now making active investments in foreign projects, it is not the most convenient startup with an opportunity for successful exit to get funds and redirect them to other projects.

There is another option that CIG will be paid partly with stocks of Glovo, not in cash. They are increasingly growing in value, so in a few years, the investor will make a good deal by selling them.

Reasons for acquiring

The purchase of is an excellent chance for Glovo to strengthen and quickly expand its business. The company develops delivery within Ukraine and has already started to open dark stores. Currently, Glovo is a market leader in restaurant food delivery, and is a market leader in supermarket goods delivery; at least they assure the public about that. The deal will help Glovo to concentrate all their pluses under one brand.

What does it mean? Opening dark stores is a long and expensive process. After the deal, Glovo will acquire a company that can deliver not from hundreds of stocks that would be a must in big cities (and also require time to build them) but from existing supermarkets using their old work patterns. One of the market insiders assumes that it will result in a monopoly in restaurant and supermarket food delivery that will be impossible to beat.

Glovo has raised $1.2 billion in investments. The company closed its last $500 million round this year. Its representatives confirmed in many interviews that Ukraine is a big and important market for them, so they are ready to invest a lot to win it.

According to one of the sources of AIN.UA, the acquisition of is an understandable strategic decision. Back in the spring of 2021, several strategic acquisitions took place across Central-Eastern Europe, and at the same time, negotiations with the Ukrainian company began. The company is targeting this still a relatively free region in order to capture as much of the market as possible. It is reasonable — not so long ago, the Finnish company Wolt was bought out for over $7 billion. The acquisition of a local player is a good decision for Glovo — the company will spend several tens of millions of euros but will receive more than a hundred in capitalization.