HelloFresh looking to raise €300m as it regains appetite for IPO
Young Gun-founded company eyes listing on Frankfurt stock exchange with potential target valuation of €1.5bn two years after it postponed float
HelloFresh, the Startups 100-featured recipe box company, has resumed plans to go public two years after it postponed a float in 2015.
The company is looking to raise €300m in a listing on the Frankfurt stock exchange, with analysts suggesting it would target a valuation of between €1.5bn.
Launched in 2012 by Young Guns Ed Boyes and Patrick Drake, HelloFresh allows customers to pick their favourite recipes from a weekly menu to receive the fresh ingredients delivered to their door in the exact quantities. In March, it expanded its offering with the launch of meal kits exclusively in Sainsbury’s.
HelloFresh is backed by German start-up incubator Rocket Internet, which owns a 53 stake in the company. Rocket Internet found success with the listing of Delivery Hero in June; the on-demand takeaway service has seen its shares increase by almost a quarter, resulting in a market value of €6bn.
Despite not yet turning a profit, HelloFresh has continued to see exceptional sales growth – revenues hit €435.4m between January and June this year – and is expecting to break even within the next 15 months, bolstered by continuing margin improvements.
Both customers and sales were up 53% at the end of the second quarter in comparison with the same period last year, with more than 1.3m people now active users of the company’s delivery service.
The news follows rival US firm Blue Apron’s under performing IPO this summer, which resulted in its shares closing at half its listing price of $10 and much lower than the initial target of $17.