Amsterdam-based Picnic, an online supermarket, has secured €355M in a fresh round of funding from its shareholders, including German supermarket chain Edeka, the Bill & Melinda Gates Foundation Trust, and well-known Dutch family businesses.
The company will use the funds to execute its strategic plans and expand its market position. Additionally, the company plans to focus on a further rollout to new cities and robotisation.
Picnic’s sustainable model of free doorstep delivery of groceries with electric trolleys and preventing food waste are important reasons for investors to invest in the successful expansion of the web supermarket.
The announcement comes two years after raising €600M in its Series D round.
Grew market share by 7% in the Netherlands
Besides funding, the Amsterdam company has also improved its market share over the past year in every country, where it operates.
Picnic’s market grew by about 7 per cent in the Netherlands, Germany, and France. Also, the company grew five times faster by almost 40 per cent.
“We are taking the same approach in Germany and France as we did a few years ago in the Netherlands,” said Picnic co-founder Joris Beckers. “We are building distribution centres and opening hubs in cities like Hamburg, Berlin and Paris. District by district, we then roll out grocery delivery. Compared to the Netherlands in the first few years, we are growing even faster in Germany and France. In addition, investments in robotisation are further improving profitability and strengthening our unique market position.”
In the Netherlands, growth primarily comes from existing cities, while new cities, such as Hamburg, Berlin, and Paris, contributed to growth in Germany and France.
After six months, sales in Hamburg reached €40M, making it the fastest growing Picnic city.
Successful robotisation and improvements in the efficient and 100 per cent electric delivery network ensured improved profitability, says the company.
The Dutch company achieved total sales of approximately €1.25B in 2023 and expects growth to continue in the coming years due to the trend of new families shopping online and finding the perfect service at Picnic due to its attractive pricing, extensive own-brand, and free delivery.
Picnic says the investments in robotisation will also be stepped up, including with a robotised fulfilment centre in Oberhausen (DE).
Beckers: “This is another step in our long-term strategy that we are taking together with our shareholders. The strong growth and underlying profitability in mature areas gives great confidence in the future.”
Picnic: Supermarket on wheels
Founded in 2015 by Michiel Muller, Frederik Nieuwenhuys, Joris Beckers, and Bas Verheijen, Picnic quickly became a household name in the Netherlands, and their small electric vans a familiar sight.
Before its launch in late 2015, Picnic operated in stealth for three years with a team of 30 specialists, focusing on streamlining the delivery of groceries to homes without unnecessary intermediaries.
With Picnic, the customer can choose the most convenient delivery time, tracked through the Picnic shopping radar down to the minute.
The innovative distribution method incurs such low costs that delivery is offered free of charge, and the groceries are competitively priced.
Picnic expanded to Germany in 2018 and entered the French market in 2021.