Germany-based food delivery startup HelloFresh’s valuation has hit a new high with a fresh round of funding totaling $85 million.
The latest investment round, which was led by Scottish firm Baillie Gifford, quadrupled the company’s valuation to $2.9 billion and cut Rocket Internet’s shareholding value from 58.9 percent to 57.2 percent, according to Rocket Internet.
Despite the downfall in stock value, with HelloFresh’s improved valuation, the startup incubator saw a 16 percent jump in stock value to €24.75, as compared to its initial public offering, according to Bloomberg.
In February this year, the incubator reportedly provided a $126 million Series E funding to HelloFresh in partnership with Insight Venture Partners.
Before the food delivery company caught investors’ attention earlier this year, the company said it was delivering over a million meals every month and could provide for up to 420 million users across the world.
“Over the past few months, we have grown our operations extremely fast, which means that a lot more people now enjoy a delicious, home-cooked meal more often and without the usual hassle. We are constantly opening up new ways to eat healthier and enjoy more quality time around the dinner table. That’s very motivating and inspires us to take the company to the next level,” said HelloFresh U.S. CEO Seth Goldman.
HelloFresh, which was first launched in 2011, delivers kits containing recipes and fresh ingredients on a weekly basis in seven countries, including the United States, U.K. and Netherlands. Since its launch, the company’s business model has seen rapid growth, pushing its sales to more than quadruple and reach an approximate $80 million, said CEO Dominik Richter.
With the latest round of funding, the startup might be closer to its plan for filing an IPO sometime this year. According to Bloomberg, a source close to the matter said that the company is “constantly evaluating possible financing options, among them a potential future IPO."