Blue Apron says it could be worth $3 billion

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Source:   —  June 19, 2017, at 1:46 PM

The meal-kit company said in a regulatory filing Monday that it could be worth $3 billion when its stock starts trading on the NY Stock Exchange.

Blue Apron says it could be worth $3 billion

Blue Apron is expecting a large delivery of greens.

The meal-kit company said in a regulatory filing Monday that it could be worth $3 billion when its stock starts trading on the NY Stock Exchange.

Blue Apron, which plans to list below the ticker symbol APRN, said it'll sell thirty million shares in its initial public offering at $15 to $17 a share. It'll probably start trading this summer.

If Blue Apron prices its offering at the midpoint of $16, it'll lift 0 million and have a market cost of just below billion. That'south up from a valuation of $2 billion the latest time Blue Apron raised money from private investors, in two thousand-fifteenth.

The valuation and the quantity Blue Apron expects to lift could climb if the company decides to sell more shares or lift the price range for the stock.

It'll be fascinating to look how Blue Apron fares as a public company. Income has grown rapidly, from $77.8 million in two thousand-fourteenth to $795.4 million latest year.

But Blue Apron'south losses have mounted as well. It lost $30.8 million in two thousand-fourteenth, $47 million in two thousand-fifteenth and $54.9 million a year ago. The company lost $52.2 million more in just the first three months of this year.

Related: Amazon wrecked the mall. Presently it'south coming for the grocery store

And a new competitive threat may be emerging. Amazon's (AMZN, Tech30) astonishment decision to purchase Whole Foods (WFM) for $13.7 billion threatens to shake up the all food business.

The stocks of other supermarket companies plunged because of competitive fears, as did the stocks of mass-market retailers with huge grocery units -- most notably Walmart (WMT), Target (TGT) and Costco (COST).

And stocks of food makers Conagra (CAG), Kraft Heinz (KHC) and Campbell Soup (CPB), among others, also fell as investors worried that Amazon may attempt to pressure these companies to sell their products for lower prices.

Blue Apron didn't mention Whole Foods or Amazon by title in its most recent SEC filing.

But it did declare that business combinations and consolidation could "further expand the contest we face and result in competitors with significantly greater resources and customer bases than us."

Still, Blue Apron has some impressive backers -- and board members.

Related: What happens to delivery service Instacart after Amazon-Whole Foods?

Two of the company'south largest investors are the Silicon Valley firm Bessemer Venture Partners, which has invested in Pinterest, Yelp (YELP), Skype and LinkedIn -- the latter two are presently owned by Microsoft (MSFT, Tech30) -- and mutual fund giant Fidelity.

There'south even a Blue Apron connection to Warren Buffett. One of the company'south board members is Tracy Britt Cool -- CEO of the kitchenware company Pampered Chef, which is owned by Berkshire Hathaway (BRKB).

Chilly has been a trusted adviser to Buffett during the past few years, and she'south on the board of Kraft Heinz along with Buffett. Kraft Heinz is Berkshire'south largest investment. The Oracle of Omaha'south firm owns more than a quarter of it.

So maybe Buffett will one day have some Blue Apron stock delivered to his portfolio.

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