CZECH – Rohlik, a leading European online grocer based in the Czech Republic, has raised €190 million (about US$229.62 million) in funding to accelerate the growth of its online grocery business.
The round was led by Partech and joined by Index Ventures, with participation from EBRD, Quadrille Capital, J&T Banka, R2G and existing investor Enern Miton.
Founded in 2014, Rohlik currently operates its online grocery delivery service in Czech Republic, Hungary and Austria.
For its 2020 financial year, the company says it will record revenue of about US$362.56 million, representing 101% annual growth and 750,000 customers.
Rohlik says it will use the capital to fuel its expansion in existing markets, as well as its launch into Germany in coming months, followed by other international markets.
“With this funding round, we will be able to accelerate our growth and continue to invest in our market-leading technology and operating capabilities,” said Tomáš Čupr, Rohlik Group CEO.
Omri Benayoun, general partner at Partech, added: “Rohlik is the most exciting player in the European online grocery industry.
Rohlik’s execution expertise has earned it the trust of both local merchants and global FMCG companies; allowing Rohlik to outperform on quality and price compared to the grocery giants.”
Surge in online grocery across Europe
Online grocery delivery services have witnessed a surge in demand since the outbreak of Covid-19, with companies such as Drizly and Instacart raising significant funds.
In Europe alone, the online grocery market is expected to grow by 66 percent by 2023, according to a study conducted by Amcor.
Throughout the pandemic, about 15 percent of surveyed EU-5 consumers have shopped for groceries on a website that they had never used before.
Among those consumers, more than 50 percent say they intend to continue shopping at their newfound site for at least some part of their grocery needs.
Additionally, 12 percent of them have also switched to different grocery stores to take advantage of home delivery or click-and-collect services, both accessible via online ordering.
The surge in demand for online orders and the relatively underdeveloped European online grocery market present a great opportunity for a Rohlick expansion.
At a penetration rate of 1.5, Germany-where Rohlick wants to expand into-has one of the lowest online grocery penetrations in Europe, making it an attractive market to venture into.
Jan Hammer, partner at Index Ventures, commented: “We’ve been impressed with Rohlik’s consumer proposition, offering premium produce alongside a wide range of value-priced products, combined with convenient delivery options.
The team at Rohlik has executed flawlessly and relentlessly to create one of the most exciting and fast-growing food businesses in Europe.”
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