Oda, Norway's leading online supermarket, is receiving NOK 1.5 billion (€145 million) in fresh capital from new and existing investors, consolidating its position in the European online grocery business. The additional capital is expected to drive market penetration in Norway, Finland and - from 2023 - Germany, giving more people easy, hassle-free access to affordable groceries. With its efficient logistics system, Oda conserves valuable resources along the food supply chain and aims to make its online grocery business sustainably profitable, the company said.
From left to right, Staffan Mörndal (Partner, Verdane Capital), Karl Munthe-Kaas (Co-Founder and CEO, Oda), Kristin Thornes Woldsdal (Managing Director, Oda Norway), Vegard Aakre Vik (Co-Founder and CFO, Oda), Martin Gjølme (Partner, Summa Equity).
"Oda is rethinking grocery retailing - we are impressed by this. Thanks to its efficient logistics and delivery system, Oda is making the online grocery trade both sustainable and profitable. Oda significantly reduces food waste and emissions compared to shopping in stationary supermarkets. The business model has enormous potential and we are excited to contribute to Oda's continued growth," said Martin Gjølme of Summa Equity and Staffan Mörndal of Verdane.
As an online-only supermarket, Oda's processes are designed to conserve resources: With short supply chains and optimized processes, Oda produces up to three times less food waste than brick-and-mortar retailers. Oda's goal is to eliminate inefficiencies in the food supply chain and drive structural change in the global food industry, where up to 40% of all food is lost or wasted each year. This means the funding round furthers the achievement of the UN Sustainable Development Goal 12, which calls for, among other things, halving global food waste by 2030.
Together, investment companies Kinnevik, Verdane Capital and Summa Equity are injecting a total of NOK 1.5 billion in new capital into the company. Existing investors Rasmussen Group, Prosus and Kinnevik are also participating in the financing round, contributing an additional NOK 621 million through the conversion of a convertible loan. Oda's post-money valuation as a result of the financing round is approximately NOK 3.5 billion.
Profitable in the home market
Oda was founded in 2013 to make people's everyday lives easier with convenient grocery, deliveries directly to their doorstep. Over the past nine years, Oda has built a successful and profitable online grocery business in Norway.
"In 2021, we achieved an operating profit of NOK 29 million in Norway - concrete proof that our business model works. In addition, our sales in Norway have increased by 15 to 20 percent in recent months compared to the same period last year - at a time when online retail is shrinking," says Kristin Thornes Woldsdal, Managing Director of Oda Norway. "Last year, we lowered our prices in Norway to keep up with competitors in the discount market. This has had a positive impact on our customer base and sales. Oda customers now have access to even more affordable, high-quality food."
Despite the difficult situation on the capital market, Oda is raising a total of NOK 2.1 billion in fresh equity from well-known Nordic investors in the current financing round.
"Summa, Verdane and Kinnevik are strong, long-term partners with a particular focus on companies that aim to make global trading systems more sustainable. Their support not only confirms that our business model is a breath of fresh air in food retailing, but also our focus on sustainable growth. I am also pleased to receive further support from our existing investors Rasmussen Group and Prosus. Oda is now well positioned for further targeted growth in Norway, Finland and Germany," says Karl Munthe-Kaas, co-founder and CEO of Oda.
Focus on Norway, Finland and Germany
In 2021, Oda reported sales of NOK 2.47 billion, an increase of 25 percent from NOK 1.98 billion the previous year. In addition, Oda invested more than NOK 380 million in scaling its proprietary logistics platform and international expansion: in 2021, Oda launched in Finland; its German market entry will follow in early 2023.
Oda's goal is to embark on a profitable growth path in international markets as soon as possible: "We have adapted our approach to further international expansion to the current market environment. Oda is focusing on profitable growth in Finland and Germany before we enter other markets," explains Karl Munthe-Kaas. "With the new capital, we are well positioned to continue driving change in the food industry and make the everyday life of our customer's easier and less stressful in Norway, Finland and, from January, in Germany as well."
For more information:
https://oda.com/de