Despite being a privately-owned entity, Rohlik Group has been actively expanding its operations throughout Central Europe. While the company has generally maintained a reserved stance regarding its valuation, it disclosed a valuation of 1.3 billion euros as of mid-2022. Notably, a funding round conducted in 2021 elevated Rohlik Group to unicorn status, surpassing a valuation of 1 billion US dollars.
Rohlik emphasizes its commitment to local suppliers and products, and it has recently focused its growth efforts in Germany, where it has formed a partnership with Amazon.
The current valuation aligns with an assessment mentioned by Rohlik's founder and CEO, Tomas Cupr, in a podcast released this week.
This valuation is significant as Cupr's company is offering bonds worth 3 billion Czech crowns ($125.02 million) with a 6.00% coupon rate, maturing in December 2029. Bondholders are entitled to an extraordinary yield of up to 27.5% if Rohlik's value surpasses 3.5 billion euros.
If the valuation at maturity falls between 2.5 billion and 3.5 billion euros, bondholders will receive a 25% extraordinary yield, while a 20% yield applies if the value is below 2.5 billion euros.
In a previous bond issuance of 3.55 billion crowns maturing in 2026, Cupr pledged 114,400 shares of Rohlik, representing 19.3% of the total shares issued, as collateral for the bonds. These shares can be utilized to determine Rohlik's valuation based on the most recent loan-to-value ratio of 39.35%, assessed by an external party and published last month.
In a recent appearance on a J&T Banka podcast, Cupr indicated that the company's latest independent valuation, conducted biannually, estimated Rohlik's worth at a similar level.
"The evaluation is slightly higher than what was reported in the last investment round during the summer, which was just over 1.6 billion euros. However, that was prior to the news regarding Amazon, which I believe will significantly boost our position," he stated in the podcast.
At a certain point, the assessment may merely represent a theoretical number. The crucial factor is the company's capacity to generate profit.
Cupr indicated that earnings from the Czech Republic, Hungary, and Romania would sustain Rohlik's expansion in Germany.
In a May interview, Cupr informed Reuters that Rohlik is expected to achieve break-even status within the next year.
Rohlik has secured funding from prominent venture capital firms such as Index Ventures, Partech, and the Belgian investor Sofina.
The new bond issuance is being managed by J&T Banka, PPF Banka, and Erste Group Bank's Ceska Sporitelna. -Reuters