Meal kit startup HelloFresh is getting ready to go public

 

Deborah/Flickr (CC)German meal kit delivery group HelloFresh, a competitor to U.S. firm Blue Apron, announced plans on Tuesday for an initial public offering (IPO), aiming for €250 million to €300 million ($294-353 million) in proceeds to fund growth.

HelloFresh, which delivers meal ingredients and recipes and is controlled by Rocket Internet, holder of a 53% stake, also said it expected to break even on an operating level (EBITDA) by early 2019.

"The public listing marks the next logical step to further expand our business, to secure our position as the leading global player and to pursue our long-term growth strategy," Dominik Richter, co-founder and CEO, said in a statement.

Sources told Reuters in May that a flotation could come as early as autumn, following an unsuccessful previous attempt for a listing in 2015.

Blue Apron, which competes with HelloFresh in North America, went public in June but has seen its stock tumble as it faces stiff competition and has struggled to fulfill orders at its East Coast facility.

The HelloFresh offering will consist of newly issued ordinary shares. Berenberg, BNP Paribas, Deutsche Bank, JP Morgan and Morgan Stanley are acting as joint global coordinators.

HelloFresh, which increased its number of active customers to 1.3 million from 1.2 million in the second quarter, is keen to make its service ever more personalised and add more options for delivery, like wine and desserts.