Rohlik Group, a leading European food retail technology company and online grocery market player, has secured $170 million (160 million euros) in new growth capital. The investment, led by the European Bank for Reconstruction and Development (EBRD), includes participation from existing investors Sofina, Index Ventures, Quadrille, and TCF Capital, complemented by growth funding from the European Investment Bank (EIB) through its Scale-Up initiative.

The substantial investment follows a period of rapid post-COVID growth and profitability in key markets. Rohlik plans to use the funds to support its ambitious expansion plans in the DACH (Germany, Austria, Switzerland) region and Central and Eastern Europe (CEE), aiming to establish a presence in over 15 new cities by 2030.

Founded to meet the growing demand for high-quality e-grocery services, Rohlik has experienced rapid and sustainable growth in the DACH and CEE regions. The company now delivers over one million orders per month and served over 800,000 customers in 2023. It achieved profitability in Munich after previously doing so in the Czech Republic and Hungary, validating its economic model in Germany and demonstrating its ability to expand efficiently and sustainably. In October 2023, Rohlik acquired Bringmeister, further consolidating its presence in Germany.

Despite a challenging macroeconomic environment and industry turbulence, Rohlik posted a 40% growth post-COVID. This growth and the company’s ability to achieve profitability in key markets underscore its robust performance and compelling value proposition. Rohlik’s success is also attributed to a wide range of high-quality local products, from fresh foods from local farmers and artisans to supermarket products, pharmaceuticals, and private labels, all offered at competitive prices with high levels of customer service and fast, reliable delivery.

Rohlik operates fully automated fulfillment centers using AI, machine learning, and robotics to enhance efficiency and productivity without compromising quality. These technologies are deployed across the business to provide high-quality services at every stage of the customer journey. Rohlik offers extremely reliable 15-minute delivery windows and same-day deliveries available within one hour of order placement, with 97% of deliveries made on time.

Rohlik’s growth potential and total addressable market (TAM) are significant. McKinsey estimates that up to 30% of grocery sales could be online in top European countries by 2030. The planned expansion into over 15 additional cities in the DACH and CEE regions will significantly boost Rohlik’s customer base in line with its long-term vision to become the leader in e-grocery services not only in CEE but throughout Europe. With a mix of mature, profitable cities and rapidly growing cities in earlier stages of profitability, Rohlik is on a clear path toward an initial public offering (IPO) in the coming years.

By combining advanced technology with a customer-centric approach, Rohlik has created an efficient and replicable business model. This has helped the company approach breakeven in all its existing markets, meaning the new funds can be used exclusively for growth and market penetration rather than operational needs. Rohlik currently targets revenues of over 1 billion euros and positive cash flow for the fiscal year 2024.

Tomáš Čupr, founder and CEO of Rohlik Group, said: “There is enormous demand across Europe for online groceries delivered quickly and reliably without compromising on quality. We see this as a long-term opportunity to build a market-leading proposition. At Rohlik, we have built the technology to meet this promise sustainably and profitably, using AI, machine learning, and robotics alongside our commitment to customer service to maximize efficiency and productivity. This funding will allow us to accelerate our growth, opening facilities in over 15 new cities and setting standards in online grocery delivery across Europe.”

Tamas Nagy, Director Co-head of Equity Investments at EBRD, stated: “We began working with Rohlik three years ago and have been consistently impressed by the team’s execution and investments in proprietary technology, automation, and the increasing use of AI in its operations. We are very proud to support Rohlik’s growth and expansion plans in the coming years.”

Kyriacos Kakouris, Vice-President at EIB, added: “This funding marks the first operation under EIB’s Scale-Up Initiative, designed to support more mature growth companies like Rohlik. It underscores our commitment to promoting innovation and digitalization across Europe, particularly in sectors crucial to our economy’s competitiveness.”

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