Ocado raises £575m to fund expansion of its tech division

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Ocado has successfully raised £575m through a share placement as the company seeks to capitalise on the growth of its technology arm.

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Ocado raised the £575m through share placement

Ocado raised the capital after placing 72 million shares at £7.95 each on Monday evening. In addition, the company raised a further £3m by placing 150,000 shares to senior management and 246,000 shares to selected retail investors.

The online grocery group’s share placement, which was coordinated by Goldman Sachs, follows a sharp decline in its share price since the end of regional lockdowns due to the pandemic, down 50% in the last six months.

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Ocado said the funds raised would be earmarked to drive the expansion of its Ocado Solutions arm, which currently has 11 international partners including Kroger and Coles.

The capital raised will also drive further investment in technology innovation across the group, including through investing in new technologies such as those unveiled at its Re:Imagined showcase at the beginning of the year.

Ocado’s focus on its technology division comes after the online grocery group reported a decline in its food sales in its most recent quarterly update, and warned of a broader slowdown across its current financial year.