In the midst of layoffs and a market collapse last month, Y Combinator advised all of its portfolio founders to prepare for the worst. Sequoia Capital also added its voice to the chorus, warning of a “crucible time” for entrepreneurs. Inflation, stock market meltdowns, and geopolitical crises have all thrown the venture market into disarray.
However, investors have shown strong confidence in Rohlik Group, a Czech Republic-based grocery delivery company that provides same-day delivery services in 90 minutes. The company announced on Friday that it has raised €220M in a Series D round of funding.
Rohlik co-founder Tomas Cupr says, “Series D in this tough market is a great achievement for Rohlik and the entire team. Without our great people, we wouldn’t be in this position. This raise gives us a chance to emerge as a category winner in the next few years and I am excited about what lies ahead.”
Investors in this round
The funding was led by a new investor Sofina, a Belgian family-controlled investment company, listed on Euronext Brussels. Existing investors, including Index Ventures, and the founder Tomas Cupr also participated in this round.
Sofina’s CEO Harold Boël says, “This investment fits with Sofina’s strategy in the Consumer and Retail sector of providing capital to support growth opportunities alongside partners sharing common values and a vision to bring efficiency, choice and convenience of food retail to new levels. We’re looking forward to working with Rohlik, leveraging on our decades of investments in the sector as we believe its focus on local supply and on assortment will put it in a good position to capture a significant share in e-grocery, given consumers’ shift towards sustainability.”
According to a statement, the deal represents a significant vote of confidence from investors in Rohlik’s fundamentals, with total capital topping €500M.
Capital utilisation
Rohlik Group says it will use the funds to accelerate its technology innovations, including automation of fulfilment centres, electric mobility, and further expansion in existing countries.
Currently, the company operates in Prague (rohlik.cz), Budapest (kifli.hu), Vienna (gurkerl.at), Munich, Frankfurt (knuspr.de) and will soon launch in Hamburg, Milan (sezamo.it), Bucharest (sezamo.ro), and Madrid (sezamo.es).
“A combination of fast and precise delivery”
Founded in 2014 by Marek Sacha and Tomas Cupr, Rohlik Group is a tech company claiming to bring about a digital revolution in e-grocery.
The company’s ‘unique’ customer experience combines quick and exact delivery, a huge selection, and value for money. With over 17,000 goods to pick from and rates that are competitive with brick-and-mortar competitors, 85 per cent of orders are delivered within 90 minutes or within 15-minute same-day time periods.
The offering combines well-priced private brands, locally sourced goods from small farmers and producers, and top international brands. Fresh produce represents about 40 per cent of sales, more than most competitors.
Already serving more than a million active customers, Rohlik claims to be growing rapidly with revenues of €500M and attaining unicorn status in 2021. The group has also been profitable in the Czech Republic since 2018, and in Hungary since 2021.
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