Germany-based recipe and meal delivery service HelloFresh will look to raise about €300m ($332m) from an initial public offering in Frankfurt, Reuters reported today, citing two people familiar with the deal.
E-commerce holding company Rocket Internet holds a 57% stake in HelloFresh, as of last month. Other backers include Vorwerk Direct Selling Ventures, the investment arm of conglomerate Vorwerk, and Holtzbrinck Ventures, the venture capital firm founded by publisher Georg von Holtzbrinck.
HelloFresh runs an online service through which customers can order a set of recipes that are then delivered to them along with the ingredients to make the meals.
The company, which is present in seven European countries, in addition to Australia, Canada and the US, is spending heavily in order to grow revenue. Its revenue reportedly rose 384% to €198m for the first nine months of 2015, but losses also increased, from €8.5m to €58m over the same period.
HelloFresh raised $84.7m from investment firm Baillie Gifford last month at a valuation of $3bn, bringing its total funding to more than $277m.
Vorwerk Ventures, Rocket Internet, Holtzbrinck Ventures and investment company Kinnevik provided $10m for HelloFresh in 2012, before the company added another $7.5m the following year.
HelloFresh subsequently raised $50m from Insight Venture Partners and Phenomen Ventures, and almost $115m from Rocket Internet in February this year at a $714m valuation.
– Photo courtesy of HelloFresh GmbH