(Bloomberg)—Ocado Group Plc is elevating £575 million ($704 million) to gasoline growth because it seeks to change into the highest world supplier of automated on-line grocery-fulfillment know-how.
The British e-commerce group will increase the funds by way of an accelerated share inserting, which features a tranche for retail traders, the corporate mentioned in a press release Monday. Ocado additionally agreed a brand new £300 million credit score facility with a bunch of banks and reiterated its outlook for this 12 months.
The corporate had gathered sufficient orders to cowl the share sale inside about half an hour, based on phrases seen by Bloomberg.
Ocado, whose shares have almost halved this 12 months, mentioned the funds will give it sufficient liquidity to satisfy present commitments to present purchasers and drive additional development.
Whereas Ocado is finest identified in Britain as a web based grocer, its foremost focus is promoting robotic warehouse know-how, sustaining partnerships with retailers worldwide from Kroger Co. within the US to Coles Group Ltd. in Australia. The corporate mentioned the surge in digital meals buying in the course of the pandemic will proceed and the extra funds will assist it ramp up capability. It additionally desires to cut back the period of time it takes to get its extremely automated warehouses up and operating.
Ocado was based by three former Goldman Sachs Group Inc. bankers in 2000 and has rarely made a revenue since. It has raised vital quantities of money over the previous 20 years to gasoline the event of its robotic “grid system.”
Throughout the pandemic, Ocado Retail, its three way partnership with Marks & Spencer Group Plc, struggled with capability, having to briefly shut its web site in March 2020 as a result of it was deluged with orders.
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