Rohlic Bags $231M Despite Market Cooling for Food Delivery Companies – TechCrunch

The days of power are over for many startups in the online food delivery sector. After a long period of cash infusions, splash-and-grab promotions, interesting experiments juggling the latest technology, layoffs, mergers and acquisitions, and dropping valuations, these are often the stories you’re likely to hear about a lot these days. Today, though, there is an interesting exception: rolickA Prague-based online grocery delivery startup with nearly 1 million customers announced that it has raised 220 million euros ($231 million at current rates), money it will use to continue investing in and growing its existing markets.

This is a Series D and led by a new backer, Sofina, with previous investors – Index Ventures and founder/CEO Tomáš upr – also participating.

Looking at the current problems in the market – other big European players Getir And the gorilla layoffs of employees; Deliveroo confirmed to us that it has frozen recruitment; and others Strengthen With bigger competitors as their runways run out – Rohlik made clear with his announcement today that this D Series, taking place during a “turbulent” time, comes with a higher rating than the C Series.

However, he refused to give an exact number, so that could mean anything. When Rohlic last raised the money – $119 million About a year ago – its value was estimated at 1 billion euros, which at the time was 1.2 billion dollars, but now this figure is close to a billion dollars due to the depreciation of the euro against the dollar at the moment.

It also noted that revenue was €500 million in 2021 (but declined to give current figures), which was profitable in the markets in which it operates in Hungary and the Czech Republic, respectively since 2021 and 2018.

“Series D in this challenging market is a fantastic achievement for Rohlik and the entire team. Without our great people, we wouldn’t be in this position. This increase gives us an opportunity to emerge as a category winner in the next few years and I am excited about what lies ahead,” Uber said in a statement.

On-demand food delivery has seen a buzz over the past couple of years, with many different changes to the model – “instant” delivery, takeaways from restaurants, takeaways from cloud kitchens, groceries, liquors and more. Basics, autonomous delivery bots, etc. – enabled by bags of money from investors, a strategy among a lot of players to flood the market to build their own delivery networks and get to know more consumers via discounted promotions, and of course a global health pandemic that has led to many People are encouraged to stop visiting physical stores just as much, if at all.

It all took a very clumsy bearish turn in the past several months led by inflation and a deeply depressed stock market, which slammed all the listed online grocery players and put cascading pressure on the rest of the sector. In that context, this round seems to indicate that there is still an investment thesis in the works as investors believe that a handful of companies will emerge from the broader field as winners.

Time for the hard truth: Winners may revolve around who is the best performer, but there’s also an argument to be made that those with the most investment will have the biggest losses if they don’t. (Rohlic has now raised more than half a billion euros, or more than $500 million.)

Again, Rohlick did not reveal any numbers on how it has grown over the past year, or current revenue, in his news announcement; But it notes that its 90-minute turnaround from order to door, with 15-minute lead times to book, now covers 17,000 items.

as we are I wrote about it before, it has taken on the production of a lot of items like the baked goods themselves, and also has a mission to work closely with local stores and small producers, so this must be taken into account in the economics unit of its model. Fresh produce accounts for about 40% of its sales, which is above average for grocery delivery companies and appears to be a source of company pride: perishable produce can be very difficult to obtain.

The company is similar to Ocado in the UK in that it has taken a very systematic approach to growth (Ocado did not choose to break into Europe for example, but exports its technology to a number of partners around the world). It is now active in Prague, Budapest, Vienna, Munich, Frankfurt and soon Hamburg, Milan, Bucharest and Madrid.

Harold Boyle, CEO of Sofina, said: “This investment fits within Sofina’s strategy in the consumer and retail sector to provide capital to support growth opportunities alongside partners who share values ​​and a common vision to bring efficiency, choice and convenience in food retail to new levels. “. statement. “We look forward to working with Rohlik, to build on our decades of investments in the sector as we believe his focus on local sourcing and assortment will put him in a good position to capture a significant stake in e-grocery, given consumers’ shift towards sustainability.”

“We are very encouraged by Rohlic’s continued strong and sustainable growth, having now reached profitability in two key markets,” added Jan Hammer, Partner at Index Ventures. “This latest round of financing will allow the company to capitalize on the opportunity before it, as it doubles down on its investment in technology, accelerates expansion and strengthens its market leadership.”