Blue Apron, the biggest U.S. meal kit company, has hired investment bankers to lead its 2017 initial public offering. Blue Apron’s IPO is coming as competition heats up in the meal kit industry.
New York City-based Blue Apron has selected Goldman Sachs, Morgan Stanley and Citigroup Inc to lead the offering. It could come as soon as this fall.
Blue Apron was valued as high as $2 billion in a June 2015 funding round. The company, which is not profitable, generated about $750 million in revenues last year, according to one source.
Blue Apron delivers its prepackaged ingredients and recipes to subscribers’ doorsteps for them to prepare at home. It is a new business model attempting to disrupt traditional grocery shopping.
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Rivals are quickly springing up, with Plated in the U.S. market, HelloFresh in Europe and Chefs Plate in Canada.
Reuters reported last week that Blue Apron competitor, Sun Basket, which focuses on organic ingredients, has hired banks for an IPO that could come in the second half of the year.
Blue Apron was founded in 2012 in New York City by three friends. Bessemer Venture Partners, Stripes Group and Fidelity are among its investors.
Source: Reuters (29/03/2017)
