Meal kit subscription services Marley Spoon that is competing with others such as HelloFresh and Blue Apron, filed for its IPO in Australia. The company headquartered in Berlin, is looking to raise as much as 70 million Australian Dollars equal to approximately $53 million.
It chose to list its shares on the Australian Security Exchange or ASX due to Australia being one of the stronger markets. It operates in the United States and four European countries, one of which is Germany.
The IPO is expected to be completed by the early part of July and will give the company an expected market capitalization of about 200 million AUD or $152 million when its lists and will be priced at $1.42 per share.
The majority of the capital that will be raised has been placed already with different public market investors across Australia and in several other jurisdictions eligible while a small minority is to become available to resident investors in Australia through allocation from a broker in a few weeks, as per the country’s regulator rules.
As with several other recipe kit services, Marley Spoon delivers pre-portioned fresh ingredients in each of its recipes offered making it easier, more cost-effective and more inspiring to cook while at home.
Nevertheless, CEO and co-founder Fabian Siegel, who was a previous co-CEO at Delivery Hero an online take out business, has often argued that weekly grocery shopping, and even restaurants are the direct competition of the company.
To help with that, the Marley Spoon U.S. entity has partnered with Martha Stewart to create the Martha & Marley Spoon line.
The company, just recently, launched a less expensive, mass-market type of offering known as Dinnerly, in an attempt to make their meal kits not as price sensitive and broaden the appeal of the product.
Siegel said that the primary channel for new customers is through customer referrals. As far as paid marketing, Facebook beat Google, since no one really searches online for a recipe kit and awareness the product category even exists remains the biggest challenge.
Marley Spoon says it has more than 110,000 active clients in Australia, Austria, Germany, Belgium, the Netherlands and the United States, and has forecasted that its revenue this year will surpass €93 million.
Australia in 2017 represented over 37% of the company’s overall revenue, which is just ahead of its sales for the U.S. and Europe.