By Mudit Mohilay, The Tech Portal
2017 was supposed to be the year of Tech IPOs. It all started with Snap Inc which went off to a roaring start before floundering. And now, another company which had recently listed itself on the market seems to be performing under expectations. Yes, we are talking about Blue Apron. After opening at well below its expected price of $15 to $17, the company has yet to give any profit to its investors.
The company opened for IPO at a price of $10, which was significantly under the expected IPO price of $15 to $17. Considering that it is still around the same range, this could also mean that at least some of its shareholders (which may include investors or employees) are yet to cross the red line. The company’s current market cap is also below its large private valuation, which stood at around $2 Billion in its last fundraising round.
Meanwhile, if Blue Apron doesn’t go up soon, it could spell trouble for the company. Why? Well, unless the stock goes up, it would mean that investor interest in the company wasn’t particularly high. That is its own turn will further dampen further investor interest.
Meanwhile, Blue Apron has certainly been spending a lot of investor money of late — in places like advertising and marketing. Customer retention however, is still not particularly high. These are problems it definitely will have to address, if it wants to build a sustainable business in the country.