Please Note: An earlier version of this article published that Blue Apron saw a 10 percent stock increase. This has been updated to reflect the most current numbers as published by cited news sources as of 3:15 p.m. PST.
NEW YORK CITY, NY - Blue Apron launched its Initial Public Offering yesterday at $10 per share, surprising the market after its previous announcement aiming more towards $15 to $17.
Offering 30 million common stock shares in its public debut, Blue Apron saw a 1 percent jump after the launch, according to Reuters, despite the one-third cut in its valuation, with shares rising 98 cents late Thursday morning.
While we previously reported the company planned for its IPO to raise $586.5 million, the decision to opt for its lower projection brought it to $300 million, which the company said would be focused towards expanding.
Blue Apron said that since its launch in 2012 through March 31 its has delivered more than 159 million meals to U.S households, representing roughly 25 million paid orders, as reported by USA Today.
Other details included:
- Revenue growth from $77.8 million in 2014 to $795.4 million last year
- A more than tripled customer base since 2015, with more than 1 million customers ordering 8 million meals every month, according to a report from research firm S3 Partners
The meal kit business continues to rise in competitiveness, however, with delivery pilots launching out of Amazon, Uber, and even brick & mortar grocers.
With a business model that looks to “eliminate the middlemen” for consumers, this latest move is one that could bolster sustainability of that model, according to Managing Partner at tech investment company Goodwater Capital Eric Kim in a Blue Apron report.
"...How they plan to use these IPO proceeds to create that moat [around their business], other than spending on marketing, will be critical to how enamored Wall Street becomes with the stock," Kim noted, according to USA Today.
With so many moves occurring in the retail and foodservice scape, keep checking in with AndNowuKnow for all the latest.
