HelloFresh’s IPO Roadmap and the Potential Problems it could Face

If you are a health nut or just enjoy the convenience of having healthy food delivered to your doorstep then you’ve probably heard of HelloFresh.  HelloFresh, a Berlin-based meal delivery company operating out of the United States has recently announced its plans to take the company public on the Frankfurt Stock Exchange.

A few factors could help shape the way we look at the potential success of failure of HelloFresh as a public company.  A rival of HelloFresh, Blue Apron took its company public last June and has seen a bearish response from investors.  Another important factor to consider is Amazons recent acquisition of Whole Foods.  Whole Foods as a healthy food delivery alternative to HelloFresh could threaten the market share of HelloFresh.  Additionally, Albertsons, another potential competitor of HelloFresh recently acquired Plated, a “chef prepared” meal delivery service for $200 million dollars.  The meal delivery space is getting crowded, but does HelloFresh still have a fighting chance?

There is no doubting the United States fascination with healthy food and meal delivery is definitely on the rise, but I think HelloFresh will need to expand into more foreign markets to see a bullish response from investors.  HelloFresh says that it wants to raise 250 million to 300 million euros from its offering.  The raise could be used by HelloFresh to enter new markets and establish itself as the go-to healthy meal delivery service in these markets.

Fast Growing Demand for Home Delivery

CEO Dominik Richter has said that taking the company public is the next logical step and I would have to agree.  HelloFresh has been increasingly burning through money the past few years on marketing to new customers.  HelloFresh is just one of many meal delivery services in the United States and their fate as a public company is still undecided, but there is no doubting the fast growing demand of home delivery.  Zippykind, a Saas delivery software company operating out of the United States provides a software platform for delivery drivers, dispatch operators and customers to communicate effectively and for deliveries to be dispatch automatically and with ease.  Learn more about the Zippykind Delivery Software platform.