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HelloFresh cooks up plan to go public

Berlin-based meal kit company, HelloFresh, has announced plans to raise up to €300 million ($453.6 million) in an IPO on the Frankfurt Stock Exchange.

The move comes two years after the company’s first attempt at listing on an exchange ended unsuccessfully.

But after recently reporting a 53 per cent jump in revenue to over €230 million in Q2 2017, the company seems ready to take another stab at it.

“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,” HelloFresh co-founder and CEO Dominik Richter said in a statement Tuesday.

However, HelloFresh, which operates in 10 markets, faces increased competition from the meal kit space.

In the US, Blue Apron listed on the New York Stock Exchange in June, and Amazon recently launched its own meal kit offering.

In Australia, newer entrants, such as Marley Spoon and Aussie Farmers Direct, have ramped up their marketing efforts in recent months, launching TVCs and free trials.

The rise of the meal kit industry has been driven by consumers’ growing acceptance of e-commerce and busier lifestyles, which make meal kits an appealing proposition.

However, some remain skeptical about the long-term profitability of meal kit companies, which typically deliver recipes and the accompanying ingredients to customers.

BlueApron has largely failed to meet impress investors since going public, due to its struggles to solve the issue of customer retention.

HelloFresh is backed by German technology company, Rocket Internet, as well as Insight Venture Partners and Baillie Gifford.

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