Czech online grocer Rohlik Group has raised $170 million (€160m) in fresh funding to expand the business to more than 10 cities in the DACH and CEE regions.
The expansion will see Rohlik boosting its customer base in Europe and helping the company navigate towards an initial public offering (IPO) in the coming years.
The investment was led by the European Bank for Reconstruction and Development (EBRD), alongside existing investors Sofina, Index Ventures, Quadrille, and TCF Capital and complemented by growth capital funding from the European Investment Bank (EIB) under its Scale-Up Initiative, Rohlik noted.
Tamas Nagy, director and co-head of equity investments at EBRD, said, “We first partnered with Rohlik three years ago and have been continuously impressed by the management team’s execution and investment into proprietary technology, automation and increasing use of artificial intelligence across its operations. We are very proud to support Rohlik’s growth and expansion plans in the years to come.”
Kyriacos Kakouris, vice president at the European Investment Bank (EIB), added, “This financing marks the first operation under the EIB Scale-up Initiative, designed to support more mature growth companies like Rohlik.
“It underscores our commitment to fostering innovation and digitalisation across Europe, particularly in sectors crucial to the competitiveness of our economy.”
Growth Targets
Rohlik noted that it has created an 'efficient and replicable' business model by combining advanced technology with a customer-centric approach.
The company operates on fully automated fulfilment centres, leveraging a host of AI, ML and robotics technologies to drive efficiency and productivity without compromising on quality.
This approach has helped the company reach near break-even in all its existing markets.
It means that the new funds can be used for growth and market penetration rather than operational needs.
Rohlik added that it is currently targeting revenues of over €1 billion with positive cash flow for the 2024 financial year.
Tomáš Čupr, founder and CEO of Rohlik Group, stated, “There is huge demand across Europe for online groceries delivered quickly and reliably without any compromise on quality. We don’t see that as a short-term phenomenon, but as a long-term opportunity around which to build a market-leading proposition.”
Estimates from McKinsey show that as many as 30% of grocery sales could be online by 2030 in leading countries.
Rohlik offers 15-minute delivery windows and same-day deliveries within an hour after placing the order. The company also claims that 97% of its deliveries are on time.
