Friday Fundings: Glovo, Pipe, and Tonal
Spanish Delivery Service Raises $528 million
Glovo, a delivery startup from Spain, raised $528 million in a Series F funding round, led by Lugard Road Capital and Luxor Capital Group. Existing investors Delivery Hero, Drake Enterprises, and GP Bullhound also participated in the round. Glovo is a delivery service in Europe with more than 10 million users across twenty markets. The $528 million investment is the largest funding round raised by a Spanish startup to date.
Glovo wants to become the leading delivery service in the twenty markets it serves by expanding what it calls its “q-commerce” service. This is a type of service available to customers in urban settings whereby deliveries occur in 30 minutes or less. Proceeds from the round of funding will be used to expand that service, hire as many as 200 more engineers, and enhance the company’s technology.
Pipe Raises $150 Million
Pipe, a Miami-based fintech company, raised $150 million in funding, giving it a valuation of $2 billion. The growth round was led by Greenspring Associates and includes new and existing investors. The round is still ongoing due to investor interest in the startup and comes a few weeks after Pipe raised $50 million. Investors in the earlier round included Raptor Group, Shopify (SHOP), Slack (WORK), and MSD Capital among others.
Since its inception Pipe has tried to give SaaS companies another funding option outside of venture capital or venture debt. Part of Pipe’s mission is to match SaaS companies with investors through a marketplace. Investors can pay a discounted rate for annual SaaS contracts which allows the SaaS companies to receive some revenue up front.
Pipe has not commented on the $150 million investment but proceeds from its earlier $50 million raise are going to expand its platform to businesses with recurring revenue.
At-Home Workout Startup Raises $250 Million
Tonal Systems, the San Francisco-based at-home fitness startup, raised $250 million in venture funding, giving it a valuation of $1.6 billion. Dragoneer, Cobalt Capital, L Catterton, and Sapphire Ventures led the Serie E round. Since its inception in 2015, Tonal has raised $450 million.
Tonal makes a workout station which mounts to a wall. Some of its rivals include Peloton (PTON), Hydrow, and Mirror which was bought by Lululemon (LULU). Proceeds from the round of funding will be used to expand its marketing, open more physical storefronts, and ramp up manufacturing to meet red-hot demand. The company also said the funding brings it closer to an initial public offering.
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