Berlin-based, Rocket Internet SE-backed food delivery startup, HelloFresh AG, is planning to conduct an initial public offering (IPO) in Frankfurt.
The sale will include both new shares and shares from current shareholders if they desire, according to Rocket Internet, which owns a 56.4% stake in HelloFresh.
HelloFresh, the self-proclaimed leading online, global in-home food delivery service, provides subscribers with locally sourced, fresh, and pre-portioned ingredients along with custom recipes that allows the buyer to cook fresh, well-balanced meals each week, eliminating the need for planning, shopping, or finding recipes.
Upon completing a €75 million funding round in September, HelloFresh achieved a valuation of €2.6 billion (US$2.9 billion). Indeed, since its launch in 2011 HelloFresh has seen meteoric growth, serving 13.2 million meals to 530,000 subscribers in seven countries across three continents including Australia, Austria, Belgium, Germany, The Netherlands, the UK and the U.S. This vast expansion in subscribers has translated into increased revenues from €18.8 million in the third quarter of 2014 to €85.5 million in the third quarter of 2015, indicating a year on year growth of 356%.
Online transactions currently account for 3.4% of total food spending in HelloFresh’s market regions, however over the next five years the ‘fresh food at home’ market is expected to grow nine-fold in HelloFresh’s markets from a value of €0.8 billion in 2015 to €7.1 billion in 2020 according to data from Technomic.
“In only four years, we have managed to disrupt the traditional food supply chain and build a global company based on a compelling, scalable business model” said Dominik Richter, co-founder and CEO of HelloFresh. “We believe in HelloFresh’s subscriber proposition and the enormous growth opportunity the market offers. Listing our shares on the stock market will provide us with the financial flexibility to actively invest in our growth strategy.”
Upon HelloFresh pursuing the IPO, it will consist of an initial public offering in the Federal Republic of Germany and the Grand Duchy of Luxembourg, as well as private placements in jurisdictions outside these countries.
Goldman Sachs International and Morgan Stanley are to act as joint Global Coordinators of the offering, and JP Morgan and UBS have been appointed as Joint Bookrunners.
Looking forward, HelloFresh aims to expand its geographic reach and increase its market penetration, to improve its flexibility and service through the expansion of the range of meals offered, reducing order lead-time, and offering additional delivery windows. The company also plans to increase customer loyalty and position itself as a lifestyle brand.