Rohlik Group, an European food retail technology and online grocery leader, announced it has successfully raised €160 million in fresh growth capital. 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. The investment will be used to fuel Rohlik’s ambitious expansion plans in DACH and CEE, where the company aims to establish its presence in more than 10 additional cities by 2030.
Founded to meet the growing demand for online grocery services that offer superior quality and better customer experience, Rohlik has achieved rapid and sustainable growth across the DACH and CEE regions. The company now delivers over a million orders per month, and served over 800,000 customers in 2023. It has now reached profitability in Munich, having already done so in the Czech Republic and Hungary, validating its economic model in Germany and proving its ability to scale efficiently and sustainably. In September 2023, Rohlik acquired Bringmeister, further strengthening its footprint in Germany.
Tomáš Čupr, founder and CEO of Rohlik Group, said: “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. At Rohlik, we have built the technology to deliver on that promise in a sustainable and profitable way, leveraging AI, ML and robotics technology with our obsession with customer service to drive maximum efficiency and high productivity. This funding will allow us to accelerate our growth, opening facilities in more than 10 new cities, and set the standard in online grocery delivery across Europe.”
Despite the challenging macroeconomic environment and a period of turbulence in the industry, Rohlik has grown by 40% post-COVID. Rohlik’s ability to drive sustained growth and achieve profitability in key markets is a testament to its robust performance and compelling value proposition. The company’s success is driven by a best-in-class local assortment of goods, which ranges from fresh food from local farmers and artisans to supermarket goods, pharmacy items and private label brands, alongside competitive prices, high levels of customer service and fast, reliable delivery, powered by an innovative proprietary technology infrastructure.
Rohlik operates fully automated fulfillment centers, leveraging a host of AI, ML and robotics technologies to drive efficiency and high productivity without compromising on quality. These technologies are implemented across the business to provide customers with high-quality service at every step of the journey. Rohlik offers highly reliable 15-minute delivery windows and same-day deliveries available as soon as 1 hour after booking. Ninety-seven percent of Rohlik’s deliveries are on time.
By combining its advanced technology with a customer-centric approach, Rohlik has created a business model that is both efficient and replicable. This has helped the company near break-even in all its existing markets – meaning the new funds can be used purely for growth and market penetration rather than operational needs. Rohlik is currently targeting revenues of over €1 billion with positive cash flow for the 2024 financial year.
Tamas Nagy, Director, Co-head of Equity Investments at the European Bank for Reconstruction and Development (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 digitalization across Europe, particularly in sectors crucial to the competitiveness of our economy.”
Read the orginal article: https://www.eu-startups.com/2024/06/prague-based-rohlik-group-secures-e160-million-to-expand-its-food-retail-tech-in-dach-and-cee-markets/
