In response to the growing demand for online grocery shopping, Ocado has raised £1bn from investors.
Increase capacity and improve the Ocado Smart Platform
Ocado has raised £650m through new shares, with an additional £350m in convertible bonds. The retailer said the COVID-19 pandemic has acted as a “catalyst” for a permanent and significant move towards online grocery deliveries.
Ocado will use the cash raised to increase capacity with its existing Ocado Solution partners, both in the UK and internationally, including Kroger, Sobeys and Casino. Ocado Solutions recently launched its first international CFCs in partnership with Groupe Casino and Sobeys. Groupe Casino’s facility opened at Fleury-Merogis to the south of Paris in March, whilst Sobeys rolled out a test launch of its facility in Ontario in April. The retailer will also use the cash raised to improve the Ocado Smart Platform in order to acquire new clients.
Tim Steiner, chief executive at Ocado, commented: “As we emerge from this crisis, Ocado has the opportunity to help our Ocado Solutions partners in the UK and around the world grow faster, to welcome more partners in new markets, to innovate more and more quickly, and to further strengthen our leadership position.”
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