February 5, 2023
A client running for Zakaz.ua places in combination a grocery order in a grocery store in Kyiv. The order will then be packed and dropped at the clientю (Photograph: Zakaz.ua)

Spanish meals supply carrier Glovo has signed an acquisition handle the Ukraine-based grocery supply carrier Zakaz.ua, Ukrainian tech media Ain.ua reported on Jan. 21.

The corporations didn’t divulge the purchase value, however in keeping with professionals’ estimates, the negotiations will have began at $15-20 million and shouldn’t have exceeded $50 million.

Consistent with Ain, Glovo paid house owners of the Ukrainian startup in stocks and money. Zakaz.ua’s primary shareholder Chernovetskyi Funding Workforce (CIG), reportedly, were given 20% in money and 80% in stocks.

CIG is owned through Stepan Chernovetskyi, a Ukrainian investor perfect recognized for being the son of notorious former Kyiv Mayor Leonid Chernovetskyi, alleged through Ukraine’s Safety Provider of abuse of workplace. Leonid Chernovetskyi allegedly is living in Georgia.

Since 2010, CIG poured just about $15 million in Zakaz.ua, in keeping with Ain.

For the Spanish tech massive with over $1,2 billion in investment, Zakaz.ua is a small deal. Zakaz.ua delivers meals from supermarkets in Ukraine, Moldova and Uzbekistan, whilst Glovo operates in just about 25 international locations.

Consistent with Chernovetskyi, Zakaz.ua was once anticipated to obtain just about $130 million in income in 2021. The similar yr, Glovo earned over $900 million. In January 2022, German company Supply Hero obtained 80% of Glovo’s stocks valuing the corporate at $2,6 billion.

Regardless of top income, each Zakaz.ua and Glovo aren’t successful companies. Oleksandr Matsuk, senior funding affiliate at SocialTech, instructed Forbes Ukraine that Glovo losses over $40 million a month. Each corporations are non-public and don’t submit monetary effects.

It’s now not strange within the meals supply trade for firms to draw investments whilst shedding cash. Well-liked products and services like Glovo, DoorDash, GrubHub and Uber Eats draw in billions of greenbacks from traders with out making benefit.

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Meals supply products and services invest in promoting, couriers’ salaries, refunds to shoppers and logistics, finishing up receiving simplest 2,5% of a buyer’s general invoice, in keeping with a Deutsche Financial institution research. 

The one manner they are able to continue to exist the rising festival is through expanding the selection of deliveries in step with day. The explanation at the back of Glovo’s luck is the facility to impulsively extend into new markets, on account of the reinforce from large traders.

Ukrainian Zakaz.ua couldn’t repeat this luck. The small startup was once created 10 years in the past through Ukrainian tech entrepreneur Yegor Anchishkin, who left the corporate after it failed to go into the U.S. marketplace.

It’s now not the primary acquisition through Glovo.

Glovo began to procure small supply companies in Might 2021. A number of the first purchases have been native Spanish supply Lola Marketplace and Portuguese Mercadão.

Through swallowing small corporations, Glovo bolstered its place available on the market and dived into the brand new trade area of interest – the release of the so-called darkish shops, warehouses, or kitchens owned through supply products and services that goal to interchange the supply from conventional groceries and cafes.