London Daily

Focus on the big picture.
Saturday, Feb 21, 2026

Ocado aims to raise £575m from investors to fund tech arm expansion

Ocado aims to raise £575m from investors to fund tech arm expansion

Firm wants to ‘invest in innovation at faster pace’ and help clients as online grocery market grows
Ocado is aiming to raise £575m from investors to fund the expansion of its technology arm, which enables overseas retailers to sell groceries online. It has also agreed a new £300m credit facility with a syndicate of international banks.

Ocado said it wanted the cash to “invest in innovation at a faster pace” and help its clients, which include the US supermarket chain Kroger and the French grocer Casino, to accelerate the shift to online shopping.

The online delivery specialist’s plan was announced late on Monday but came as Fitch downgraded its credit rating to negative from stable. The ratings agency said it would take longer than expected for Ocado’s business building hi-tech warehouses for overseas retailers to become profitable.

“Our rating reflects the growing scale, upfront investments and execution risks associated with the progress on 40 of its international [distribution centres] over the next four years,” Fitch said in a note.

Fitch said the pressure on profits would be temporary, but short-term profit margins would take a hit from customers spending less per order amid the increasing cost of living and higher labour, marketing and energy costs.

Clive Black, a retail analyst at Shore Capital, said Ocado needed to raise cash as it was funding “huge research and development, enormous operating costs and capital expenditure, and it doesn’t generate the money to cover this experiment”.

He said: “It’s symptomatic of an interesting business that doesn’t make enough money to cover its project.”

Ocado’s share price has more than halved in the past year to 831p, amid concerns that it failed to capitalise on the shift to online shopping during the pandemic when trading at supermarkets and high street stores was restricted around the globe.

The company’s hi-tech warehouses struggled to adapt to the rapidly changing retail landscape in the UK over the past two and a half years, while the major supermarkets Tesco, Sainsbury’s, Morrisons and Waitrose all quickly ramped up deliveries via their stores or partnerships with companies such as Deliveroo.

In May this year, Ocado warned that its sales growth would be less than half the rate it had hoped for as the cost-of-living crisis and return to office work and dining out hit trade.

The online grocer, which is partly owned by Marks & Spencer, said it now expected growth of less than 5% for the year to the end of November compared with 10% anticipated.

The forecast came after sales fell 8% in the two months to 25 April compared with a 5.7% decrease in the previous three months. Shoppers have been buying fewer items than usual.
Newsletter

Related Articles

0:00
0:00
Close
UK Confirms Preferential U.S. Trading Terms Will Continue After Supreme Court Tariff Ruling
U.S. and U.K. to Hold Talks on Diego Garcia as Iran Objects to Potential Military Use
UK Officials Weigh Possible Changes to Prince Andrew’s Position in Line of Succession Amid Ongoing Scrutiny
British Police Probe Epstein’s UK Airport Links and Expand High-Profile Inquiries
United Kingdom Denies U.S. Access to Military Base for Potential Iran Strike
British Co-founder of ASOS falls to his death from Pattaya apartment
Early 2026 Data Suggests Tentative Recovery for UK Businesses and Households
UK Introduces Digital-First Passport Rules for Dual Citizens in Border Control Overhaul
Unable to Access Live Financial Data for January UK Surplus Report
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
UK ‘Working Closely with US’ to Assess Impact of Supreme Court Tariff Ruling
Trump Criticises UK Decision to Restrict Use of Bases in Potential Iran Strike Scenario
UK Foreign Secretary and U.S. State Chief Hold Strategic Talks as Tensions Rise Over Joint Air Base
Two teens arrested in France for alleged terror plot.
Nordic Fracture: How Criminal Scandals and Toxic Ties are Dismantling the Norwegian Crown
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
King Charles III Opens London Fashion Week as Royal Family Faces Fresh Scrutiny
Trump’s Evolving Stance on UK Chagos Islands Deal Draws Renewed Scrutiny
House Democrat Says Former UK Ambassador Unable to Testify in Congressional Epstein Inquiry
No Record of Prince Andrew Arrest in UK as Claims Circulate Online
UK Has Not Granted US Approval to Launch Iran Strikes from RAF Bases, Government Confirms
AI Pricing Pressure Mounts as Chinese Models Undercut US Rivals and Margin Risks Grow
Global Counsel, Advisory Firm Co-Founded by Lord Mandelson, Enters Administration After Client Exodus
London High Court dispute over Ricardo Salinas’s $400mn Elektra share-backed bitcoin loan
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Former Student Files Civil Claim Against UK Authorities After Rape Charges Against Peers Are Dropped
Archer Aviation Chooses Bristol for New UK Engineering Hub to Drive Electric Air Taxi Expansion
UK Sees Surge in Medical Device Testing as Government Pushes Global Competitiveness
UK Competition Watchdog Flags Concerns Over Proposed Getty Images–Shutterstock Merger
Trump Reasserts Opposition to UK Chagos Islands Proposal, Urges Stronger Strategic Alignment
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Liberal Senator Michaelia Cash Accuses Prime Minister of Lying to Australians
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
A Lunar New Year event in Taiwan briefly came to a halt after a temple official standing beside President Lai Ching‑te suddenly vomited, splashing Lai’s clothing
Jillian Michaels reveals Bill Gates’ $55 million investment in mRNA vaccines turned into over $1 billion.
Ex-Prince Andrew Mountbatten-Windsor's arrested
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Four Chagos Islanders Establish Permanent Settlement on Atoll
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
UK Inflation Slows Sharply in January, Strengthening Case for Bank of England Rate Cut
Hide the truth, fake the facts, pretend the opposite, Britain is as usual
France President Macron says Free Speech is Bull Sh!t
Viktor Orbán getting massive praise for keeping Hungary safe, rich and migrant-free!
UK Inflation Falls to Ten-Month Low, Markets Anticipate Interest Rate Cut
UK House Prices Climb 2.4% in December as Market Shows Signs of Stabilisation
BAE Systems Predicts Sustained Expansion as Defence Orders Reach Record High
Pro-Palestine Activists Cleared of Burglary Charges Over Break-In at UK Israeli Arms Facility
Former Reform UK Councillors Form New Local Group Amid Party Fragmentation
Reform UK Pledges to Retain Britain’s Budget Watchdog as It Seeks Broader Economic Credibility
×