The era of flourishing fresh grocery delivery startups may have passed, but those that have persisted and built successful businesses are still thriving and hungry for further growth. Rohlik, a Czech grocery delivery company, announced a significant $170 million in new funding on Friday.
Rohlik, meaning ‘baker’ in Czech, has strategically positioned itself in the market by focusing on smaller warehouses and fostering relationships with local producers and sellers like butchers and fishmongers. Rather than duplicating what large supermarkets offer online, Rohlik prides itself on a curated selection of products. As a nod to its name, the company bakes bread at its distribution centers.
CEO and founder Tomáš Čupr highlighted the unique value proposition of Rohlik, stating, “To replace Rohlik you would have to do five different shops.” With 17,000 SKUs available and quick 1-2 hour delivery slots, Rohlik aims to provide a convenient and comprehensive shopping experience.
The new funding will be used to expand Rohlik’s model across Europe and enhance its technology platform. Additionally, the company plans to license its tech to other delivery partners to strengthen local networks and delivery operations. These initiatives are set to launch later this year.
The European Bank for Reconstruction and Development (EBRD) led the investment round, with participation from Sofina, Index Ventures, Quadrille, TCF Capital, and the European Investment Bank (EIB) under its Scale-Up Initiative. Čupr noted that the EIB contribution consists mainly of debt.
While the valuation of the funding round was not disclosed, it is rumored to exceed previous valuations but remains below $2 billion. Despite the challenging landscape in the grocery delivery sector, Rohlik continues to innovate and adapt to market dynamics.
Looking ahead, Rohlik aims to achieve €1 billion in revenues and positive cash flow by the end of 2024. With operations in multiple European countries and a focus on sustainable growth, Rohlik remains a key player in the evolving grocery delivery market.
Tamas Nagy from EBRD expressed confidence in Rohlik’s growth trajectory, praising the company’s investments in technology, automation, and artificial intelligence. The partnership between EBRD and Rohlik underscores a commitment to supporting the company’s expansion plans in the years to come.
