Online Grocery delivery startup Picnic snaps €355M Funding

The online grocery delivery Picnic, based in Amsterdam, has raised €355 million from its investors, which include the Bill & Melinda Gates Foundation Trust, the German grocery chain Edeka, and well-known Dutch family companies.

Two years after obtaining €600 million in its Series D round, the news was made.

The money will be used by the business to carry out its strategic goals and strengthen its position in the market. The business also intends to concentrate on robotization and a subsequent expansion to additional cities.

In 2018, Picnic reached the German market, and in 2021, it made its way to France.

The sustainable strategy of Picnic, which offers free grocery delivery to customers’ doorsteps using electric carts and reduces food waste, is a compelling incentive for investors to contribute to the online supermarket’s successful growth.

In addition to funding, the Amsterdam company has increased its market share in each of the nations in which it conducts business throughout the previous year.

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The market for Picnic increased by almost 7% in France, Germany, and the Netherlands. Additionally, the company expanded by nearly 40% five times faster.

“We are applying the same strategy in Germany and France as we did in the Netherlands a few years ago. Constructing hubs and distribution centers in cities like Hamburg, Berlin, and Paris, we initiate grocery delivery district by district. Our growth in Germany and France surpasses the pace of our early years in the Netherlands. Additionally, investments in robotization are enhancing our distinct market position and profitability,” said Picnic co-founder Joris Beckers.

Existing cities are the main source of expansion in the Netherlands, but Germany and France saw growth mostly from newly constructed cities like Hamburg, Berlin, and Paris.

Hamburg had grown to be the fastest-growing Picnic city after six months, with revenues reaching €40M.

The corporation asserts that the effective robotization process and improvements to the 100% electric distribution network guarantee enhanced profitability.

The Dutch company saw total sales of about €1.25 billion in 2023, and it anticipates growth in the upcoming years due to the trend of young families shopping online and finding Picnic to provide the best service because of its competitive price, wide range of own brands, and free delivery.

According to Picnic, there will be further expenditures in robotization, including the establishment of a robotized fulfillment center in Oberhausen, Germany.

Beckers: “We are taking this as another step in our long-term strategy in collaboration with our shareholders. There is a lot of optimism for the future because of the mature areas’ robust growth and underlying profitability.

Picnic: eGrocery Store on Wheels

Michiel Muller, Frederik Nieuwenhuys, Joris Beckers, and Bas Verheijen founded Picnic in 2015, and since then, the company and its tiny electric vehicles have become well-known in the Netherlands.

Before going public in late 2015, Picnic worked covertly for three years, employing a staff of thirty experts, to simplify the home delivery of food without the need for extra middlemen.

Customers utilizing Picnic can choose their most convenient delivery time, precisely tracked through the Picnic shopping radar. Picnic’s creative distribution strategy ensures reasonably priced groceries with no additional cost for delivery.

Image Credit: Picnic