Czech online retailer Rohlik says a major new investment will allow further expansion in DACH and CEE and keeps it on “a clear direction of travel” towards an IPO.
Founded in Czechia in 2014, Rohlik Group has built what it claims is the definitive industry model for online grocery, and is fast becoming Europe’s food retail technology leader.
Active in Czechia (Rohlik.cz), Hungary (Kifli.hu), Austria (Gurkerl.at), Germany (Knuspr.de) and Romania (Sezamo.ro), the firm is growing rapidly, and last week announced that it had successfully raised 160 million euros in fresh growth capital.
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The investment was led by the European Bank for Reconstruction and Development (EBRD), alongside existing investors Sofina, Index Ventures, Quadrille, and TCF Capital and complemented by growth capital funding from the European Investment Bank (EIB) under its Scale-Up Initiative.
The investment will be used to fuel Rohlik’s ambitious expansion plans in DACH and CEE, where the company aims to establish its presence in more than 10 additional cities by 2030.
Combining rapid growth and profitability
Founded to meet the growing demand for online grocery services that offer superior quality and better customer experience, Rohlik has achieved rapid and sustainable growth across the DACH and CEE regions.
The company now delivers over one million orders per month, and served over 800,000 customers in 2023. It has now reached profitability in Munich, having already done so in Czechia and Hungary, validating its economic model in Germany and proving its ability to scale efficiently and sustainably. In September 2023, Rohlik acquired Bringmeister, further strengthening its footprint in Germany.
Despite the challenging macroeconomic environment and a period of turbulence in the industry, Rohlik has grown by 40 per cent post-Covid.
Rohlik says that its ability to drive sustained growth and achieve profitability in key markets is a testament to its robust performance and compelling value proposition.
The company’s success is driven by a best-in-class local assortment of goods, which ranges from fresh food from local farmers and artisans to supermarket goods, pharmacy items and private label brands, alongside competitive prices, high levels of customer service and fast, reliable delivery, powered by an innovative proprietary technology infrastructure.
Rohlik operates fully automated fulfillment centres, leveraging a host of AI, ML and robotics technologies to drive efficiency and high productivity without compromising on quality.
These technologies are implemented across the business to provide customers with high-quality service at every step of the journey. Rohlik offers highly reliable 15-minute delivery windows and same-day deliveries available as soon as one hour after booking.
Ninety-seven per cent of Rohlik’s deliveries are on time.
Growth potential
Rohlik’s TAM (Total Addressable Market) and growth potential is significant: McKinsey estimates that as many as 30 per cent of grocery sales could be online by 2030 in leading countries.
The planned expansion into more than 10 additional DACH and CEE cities will significantly boost Rohlik’s customer base, in line with the company’s long-term vision of becoming the leading online grocery delivery service not just in CEE but across Europe.
With a healthy mix of more mature profitable cities and earlier stage fast-growing cities, Rohlik has a clear direction of travel towards an initial public offering (IPO) in the coming years.
By combining its advanced technology with a customer-centric approach, Rohlik has created a business model that is both efficient and replicable.
This, says the firm, has helped the company near break-even in all its existing markets—meaning the new funds can be used purely for growth and market penetration rather than operational needs.
Rohlik is currently targeting revenues of over one billion euros with positive cash flow for the 2024 financial year.
“There is huge demand across Europe for online groceries delivered quickly and reliably without any compromise on quality,” says Tomáš Čupr, founder and CEO of Rohlik Group. “We don’t see that as a short-term phenomenon, but as a long-term opportunity around which to build a market-leading proposition.”
Čupr adds that Rohlik has built the technology to deliver on that promise in a sustainable and profitable way, leveraging AI, ML and robotics technology with, “our obsession with customer service to drive maximum efficiency and high productivity. This funding will allow us to accelerate our growth, opening facilities in more than 10 new cities, and set the standard in online grocery delivery across Europe.”
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