European online grocery leader Rohlik Group has secured $170m in fresh growth capital to accelerate its expansion across Central and Eastern Europe and Germany, Austria, and Switzerland.
The investment round was led by the European Bank for Reconstruction and Development (EBRD) alongside existing investors Sofina, Index Ventures, Quadrille, and TCF Capital.
The European Investment Bank (EIB) also participated through its Scale-Up Initiative.
Rohlik plans to leverage the funds to establish a presence in more than ten new cities by 2030.
This expansion strategy comes after a period of growth for the company. Rohlik has achieved profitability in key markets such as Munich (Germany), the Czech Republic, and Hungary.
Despite economic challenges, Rohlik has grown by 40% since the Covid-19 pandemic.
The company said it differentiates itself through a curated selection of fresh, local produce alongside grocery staples, competitive pricing, exceptional customer service, and reliable delivery powered by technology.
Rohlik's secret weapon? Automation. The company utilises AI, machine learning (ML), and robotics in its fulfilment centres to streamline operations and ensure high productivity without sacrificing quality.
Rohlik is well-positioned to capitalise on the growing online grocery market, with its profitable existing markets and fast-growing new ventures.
The company is targeting revenues of more than €1bn ($1.07bn) with positive cash flow for the 2024 financial year, paving the way for a potential initial public offering in the coming years.
“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," said Tomáš Čupr, founder and CEO of Rohlik Group.
“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.”
The investment from the EBRD reflects its confidence in Rohlik's leadership and technological innovation.
This transaction also marks the first operation under the EIB Scale-Up Initiative, signifying the EIB's commitment to fostering innovation and digitalisation in European businesses.
