The Meal-kit maker Blue Apron Goes Public – A Terrific Move!
Blue Apron Holdings Inc has made its way to the IPO by going public, which is a big game changer strategy.
The Blue Apron Holdings Inc company is the biggest U.S. meal kit provider of the industry. The company has raised $300 million after going public. This smart step of Blue Apron raised smaller peers and capital investor’s expectations that the company would pave the way for them that would also help them go public.
According to the IPO, Blue Apron’s is valued at $1.89 billion, which is comparatively below than the private fundraising that was calculated around two years ago. This step of The Blue Apron Holdings Inc has made Amazon also push its small meal-kit business in a numerous areas, instead of only to a handful of U.S. cities. Now, they are making the way for their food delivery in the form of brick-and-mortar grocery stores.
Just as other meal kit providers, Blue Apron has also made a lot of their investments in marketing. Total 18 percent of its $795.4 million revenue was spent on marketing in 2016. This was a real challenge for the company as they have to balance marketing and operational costs with affordable pricing. According to the shares in the broader consumer sector signs of weakness are depicted in the past month, which has certainly affected the market.
Blue Apron total online sales with this step represented only 2.2 percent hike, but are likely expected to grow about 22.6 percent annually from 2017 to 2020.
- Published On : 5 months ago on June 17, 2017
- Author By : Ben Fowler
- Last Updated : July 17, 2017 @ 1:53 pm
- In The Categories Of : Business, Invest