Despite a pall cast over the grocery delivery market in recent weeks, Czech player Rohlik has sealed a €220 million Series D round.
Led by Sofina, the company said the money will be used to finance greater automation and electrification of its operations as well as to enter new markets. Index Ventures and founder Tomáš Čupr also participated in the round.
Rohlik runs its own fulfilment centers where groceries are stored for delivery and has one million customers. It operates in Czechia, Hungary, Austria and Germany and plans to expand its footprint by entering Spain and Romania next.
The company has not disclosed a valuation but previously said it was worth €1 billion following its last funding round in 2021.
It booked revenues of almost €500 million last year in a bubbling market for grocery and food delivery, which benefited from lockdowns and pandemic restrictions. According to the company it is profitable in the Czech market.
However the industry has undergone some unrest of late.
Chief executive Tomáš Čupr said that Rohlik has closed this funding round in a “tough market”.
Online grocery delivery has been experiencing a tumultuous number of weeks, amid the worsening global economic situation, including many companies laying off workers and other companies reassessing expansion or acquisition plans.
“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,” Čupr said.
Harold Boël, chief executive of lead investor Sofina, said that Rohlik still has growth opportunities.
“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,” he said.
Jan Hammer, partner at Index Ventures, said the investment firm was encouraged by Rohlik’s path to profitability.
“This latest round of funding will allow the company to take advantage of the opportunity in front of them, as they double down on their investment in technology, accelerate expansion and consolidate market leadership.”