categories

HOT TOPICS

Subscribe to our Feed

2016 IPO Prospects: Blue Apron Cooking up an IPO

Posted on Tuesday, Aug 23rd 2016

27495354126_6d788e4b19_z

According to market research firm Packaged Facts, the US meal kit delivery services market is estimated to grow to $1.5 billion in sales this year. The researcher predicts that the industry will grow to a multi-billion dollar market over the next five years. New York-based Blue Apron is estimated to be the market leader in the industry and analysts believe that the company is now gearing to go public.

Blue Apron’s Financials

Like other food kit subscription services, Blue Apron offers multiple meal plans to choose from. Subscribers can choose from a two-person plan, which is priced at $59.94 a week for a three-meal delivery schedule or a family plan, which is priced at $139.84 a week for four meals for a family style meal for four. The company does not disclose detailed financials or user statistics, but it has reported that it does make money on all the boxes it supplies. Analysts estimate that after earning revenues of nearly $3 million in 2013, the company was trending to revenues of $70 million in 2014. In 2015, it had claimed to be delivering 3 million meals a month, which translated to at least $324 million in annual revenues. In May this year, analysts estimated Blue Apron to be delivering 8 million meals a month, which translates to revenues of at least $960 million for the year.

It remains venture funded and has raised $194 million in funding so far from investors including Jason Finger, BoxGroup, Bessemer Venture Partners, Stripes Group, Fidelity Investments, Peak Opportunity Partners, Joseph N. Sanberg, First Round, Alan Gould, Eric Gould, and Nat Turner. Its last round of funding was held in June last year when it raised $135 million at a valuation of $2 billion. In April 2014, it was valued at nearly $500 million.

Blue Apron’s Increasing Competition

Blue Apron is not alone in the quest for the consumer’s dinner table. There are several other existing players like Plated, Chef’d, Hello Fresh, and Munchery to name a few that offer similar services. But the market is also witnessing a slew of interesting names joining the foray. Recently, The New York Times announced a tie-up with food kit delivery company Chef’d to offer similar services. According to the agreement, subscribers will be able to offer meals from Chef’d based on recipes featured in the NYT’s cooking section. NYT expects the meal kit service to become at least as big as its travel unit. Such agreements aren’t new to the industry though. Last year, Chef’d had entered into a similar agreement with Men’s Health.

Besides media companies, there are other Internet giants who are evaluating the industry. Earlier this year, Amazon announced its tie-up with Tyson Foods to create a meal kit service to be sold through Amazon Fresh. The meal kits will be sold under the name Tyson Taste Makers and will use Amazon Fresh to source and deliver ingredients to the subscribers. Amazon’s might could end up being a cause for concern even for industry leaders like Blue Apron.

Other contenders include traditional retailers like Stop & Shop, which owns the grocery delivery service Peapod. Stop & Shop has also announced plans to expand into the prepared meal kit segment to help grow its private label sales.

Meanwhile, Blue Apron is expected to be planning an IPO this year. The company has not disclosed details, but analysts estimate that it is planning on going public at a valuation of nearly $3 billion. Some even believe that if Blue Apron does not list, it could well end up getting acquired by some of these big players wanting to enter the market.

Photo Credit: Adam C /Flickr.com

This segment is a part in the series : 2016 IPO Prospects


. Airbnb Sees Skyrocketing Valuations
. Actifio Looks Ready
. AppDynamics May Sustain Unicorn Valuation
. Automattic Needs to Justify Valuation
. Avant Will Have to Wait and Watch
. BuzzFeed Feeds on Native Advertising
. Coupa Manages Expenses Expertly
. Datto Bootstrapped First, Raised Money Later
. Is Uber Ready to Ride the Stock Market?
. Overfunded Domo Looks Promising
. Houzz May Unveil The Curtains
. DocuSign Looks Ready to Sign Up
. Illumio Rides On Security Trend
. InsideSales.com Appears Ready to List
. Okta Prepares to Reveal Public Identity
. Palantir Wants to Stay Private
. Nutanix Files for IPO
. Medallia Bootstrapped First, Raised Money Later
. Slack Prepares to Communicate with the Market
. Twilio Expected to go Public Soon
. Snapchat Needs to Up Monetization ASAP
. Zscaler Sets IPO as a Long-Term Goal
. Warby Parker Should Look Before Leaping
. MuleSoft is a Unicorn, but Detailed Financials Remain Unknown
. Apttus Bootstrapped First, Raised Money Later
. Fanatics Expanding Its Playing Field
. Pinterest Finally Sees Revenues, But are they Enough?
. Tanium Bootstrapped First, Raised Money Later
. ironSource Strengthening its Revenue Generating Capabilities
. Anaplan Getting Ready to Go Public
. SecureWorks is Ready to List
. IPO-Ready Cloudera Wants to Wait and Watch
. HelloFresh Puts its IPO Plans on Hold
. Is Stripe Lining up Next?
. Qualtrics Bootstrapped First, Raised Money Later
. Skyscanner Bootstraps First from Scotland, Raises Money Later from Sequoia
. SurveyMonkey Will Likely Wait
. The Honest Company Makes the Online to Offline Model Work
. NantHealth Testing the IPO Markets, Yet Again
. BigCommerce Prepares to List
. Bloom Energy Likely to Stay Private
. Avast Software Preparing for a Listing, Yet Again
. Gusto Expands Beyond Payroll Processing
. InMobi May Have Missed the Bus
. Glassdoor Gearing up to go Public
. Human Longevity Leverages Machine Learning and Analytics to Increase Lifespan
. Blue Apron Cooking up an IPO
. Optiv Grows Inorganically
. Uber Eyeing Self-Driving
. The Trade Desk Files to List
. Deliveroo Delivers its Way to the Bank
. Selfie App Meitu Files to List on HKSE
. Apptio Files Despite Reduced Valuation and Mounting Losses
. Snap Snaps out of Chat Business to Justify Valuation
. From Bootstrapping to IPO, BlackLine Shows the Way

Hacker News
() Comments

Featured Videos