Ocado to invest GBP 140 mln in tech projects

Thursday 8 February 2018 08:57 CET | News

Ocado has raised GBP 143.2 million to invest in technology projects in order to grow its “solutions” division, which handles its partnerships with other retailers.

The retailer is planning to fund its transformation into a technology company. Earnings before interest, taxes, depreciation and amortisation (EBITDA) will reflect the fixed costs of its largest customer fulfillment centre (CFC) in Erith and the acceleration in the development of its platform.

Ocado made a GPB 500,000 pre-tax loss in 2017, compared with a GBP 12 million profit in 2016. It said that it expects its earnings to improve in 2019.

The company invested GBP 42.8 million on technology in 2017, up from GBP 34.3 million in 2016. The company is developing proprietary software and has also increased its technology staff to 1,100.

The companys deals to license its technology to French supermarket chain Groupe Casino and Canadian food retailer Sobeys put its role as a tech innovator and disruptor into focus. Ocado expects to do more deals and is in discussions with retailers across Europe and within the UK and also identified the US as a target market.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Ocado, Europe, UK, grocery, tech, retailers, partnerships, ecommerce
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce

Industry Events