Ocado accelerates expansion via £1bn raise

Ocado has successfully completed a fund raising of £1 billion that provides it with the financial capability to further accelerate its increasingly dominant position in providing automated food delivery solutions.

The arrangement involved a £657 million placing of new shares combined with an additional £350 million issuing of convertible bonds. The funding was completed overnight and will support the company’s international aspirations as it partners with a growing number of overseas grocery players for whom Ocado is committed to currently building 54 large-scale automated warehouses.

The cash will also help Ocado grow its partnerships beyond the existing customer base that includes Kroger, Casino and Sobeys and help it take a further bite out of its key target markets that it says are worth a combined £2.8 trillion. In addition, Ocado recognises the need to keep funding the ongoing development of its technology in order to maintain its leading edge.

It is clear that as Covid-19 has driven more customers to use grocery home delivery Ocado recognises the opportunity to cement its position in the marketplace and push ahead with building out its global vision.

Tim Steiner, founder and CEO of Ocado, said: “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. This capital raise gives Ocado Group the opportunity to accelerate our role in creating sustainable change in the industry, allowing us the flexibility to move at increased pace, and capitalise on the full opportunity set over the medium term.”

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