Czech online grocer Rohlik valued at nearly $2 billion, document shows
29/11/2024 16:04
PRAGUE, Nov 29 (Reuters) - Czech online grocer Rohlik
Group's valuation has nearly doubled from three years ago to
1.85 billion euros ($1.95 billion), calculations from bond issue
documents show.
The privately-held company, which has expanded in central
Europe in recent years, has rarely commented on its valuation
although in March it said it was valued at 1.3 billion euros in
mid-2022. A 2021 funding round made it a so-called start-up
unicorn with a valuation of over $1 billion.
The company promotes its use of local suppliers and local
products and has lately concentrated its expansion into Germany
where it has struck a partnership with Amazon AMZN.O .
Calculations on Rohlik's current value match an evaluation
cited by Rohlik founder and Chief Executive Tomas Cupr in a
podcast released this week.
The valuation is important as a Cupr-controlled company is
offering 3 billion Czech crowns ($125.02 million) of bonds with
a 6.00% coupon that mature in December 2029, and holders have a
right to an extraordinary yield of up to 27.5% if the value of
Rohlik rises to above 3.5 billion euros.
A valuation of between 2.5 billion and 3.5 billion euros at
maturity provides a 25% extraordinary yield, while 20% is
applied if the value of Rohlik is less than 2.5 billion euros.
In a previous 3.55 billion crown bond issue maturing in
2026, Cupr has 114,400 shares of Rohlik, or 19.3% of issued
shares, pledged to secure the bonds. Those shares can be used to
calculate Rohlik's valuation using the bond's most recent
loan-to-value ratio of 39.35% done by an outside party and
published last month.
Speaking to a J&T Banka podcast this week, Cupr said the
company's latest independent valuation, conducted twice a year,
estimated Rohlik's value at a similar figure.
"(The evaluation) is a little more than what was in the last
investment round in the summer, which was somewhere over 1.6
billion euros. But it is before news of Amazon so I think that
is something that will catapult us," he told J&T Banka's
podcast.
"Of course at some moment, the evaluation is only some
imaginary figure. What is important is the ability of the firm
to make money."
Cupr said profits from the Czech Republic, Hungary, and
Romania would continue to fuel Rohlik's growth in Germany.
In a May interview, Cupr told Reuters that Rohlik was on
track to break even within 12 months.
Rohlik has raised money from leading venture capitalists
including Index Ventures, Partech and Belgian investor Sofina
SOF.BR .
J&T Banka, PPF Banka and Erste Group Bank's Ceska Sporitelna
are managing the new bond issue.
($1 = 23.9960 Czech crowns)
($1 = 0.9471 euros)
(Reporting by Jason Hovet, Jan Lopatka and Michael Kahn;
Editing by Susan Fenton)
((michael.kahn@thomsonreuters.com; +420 234 721 612; Reuters
Messaging: michael.kahn.thomsonreuters.com@reuters.net))