Norwegian online grocery firm Oda said it has raised NOK 1.5 billion (€140 million) in a round of funding from investment companies Kinnevik, Verdane and Summa Equity.
The latest funding valued Oda at NOK 3.5 billion (€330 million), less than half the NOK 7.5 billion (€710 million) it was valued at during a similar round in April 2021.
The company, which tuned a profit in Norway last year, said it will adjust its costly international growth ambitions.
"We will focus on our current initiatives in Finland and Germany, and plan to seek profitability in existing markets before expanding to other countries," chief executive Karl Munthe-Kaas said in a statement.
Rasmussen Group, Prosus and Kinnevik have agreed to contribute NOK 621 million (€58.9 million) in equity through debt conversion, Oda said.
Successful Business Model
According to an online report, Kristin Thornes Woldsdal, managing director for Oda in Norway, said that the company made an operating profit of NOK 29 million in Norway in 2021, which is concrete proof that its business model works.
“The company has very satisfied customers who benefit from a wide range of products at low prices, delivered directly to their homes,” the report quoted Woldsdal as saying, and added that in recent months, it has seen growth in its business with sales up in its home market by 15-20% compared to the same period last year.
Earlier this year, Germany's Bünting Group entered into a trading partnership with the Norwegian online supermarket group Oda, it said in a statement.
News by Reuters, additional reporting by ESM. For more technology news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
