Blue Apron's IPO gets cloudy with Amazon's Whole Foods buy

Blue Apron's IPO gets cloudy with Amazon's Whole Foods buy

Blue Apron's IPO gets cloudy with Amazon's Whole Foods buy

While Amazon's recent acquisition of Whole Foods may give pause to anyone thinking of investing in the meal service space, there is still a lot of hype surrounding Blue Apron's IPO, since it's the biggest consumer tech IPO since Snap Inc.

The losses can be mostly attributed to Blue Apron's spending on marketing, including on major podcasts; in 2016, the company dropped $144.1 million, or 18.1% of its revenue, to spread word about itself.

Shorter term, Amazon could hurt Blue Apron by bringing "a little more" uncertainty to its issue price, Smith said.

Blue Apron, a United States company that delivers packages of ingredients for easy-to-cook meals, aims to raise at least $450m (£353.4m) as it starts to sell stock on the open market.

Days after e-commerce giant Amazon.com (AMZN) rattled the food industry with its $13.7 billion deal to acquire Whole Foods Market (WFM), meal-kit delivery company Blue Apron Holdings is vying for some of the spotlight.

A two-person plan, with ingredients and recipes for three meals, costs about about $60 (£47).

VC Journal provides exclusive news and analysis about venture capital deals, fundraising, top-quartile investors and more. But as more people switch to having their groceries delivered (many of them perhaps through their Amazon Prime memberships), the demand for meal kits from elsewhere will likely change.

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"It's a very high-end, desirable customer base, but it is very limited", Jetta said in a phone interview. That was up from 649,000 customers in the same period past year.

Blue Apron intends to use the net proceeds from this offering to repay indebtedness, with the remainder going toward working capital and general corporate purposes.

The company first filed to go public on June 1. The average order value fell to $57.23 from $59.28 in the same period, while average revenue per customer slipped to $236 from $265.

According to a June 19 filing with the Securities and Exchange Commission, it now expects the shares to sell for between $15 and $17 each.

Blue Apron's main rival, Sun Basket, has also hired banks for an IPO, Reuters reported in March. The company lost $55 million in the whole of 2016.

Blue Apron's listing is being led by Goldman Sachs Group Inc., Morgan Stanley, Citigroup Inc. and Barclays Plc.

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