Rocket Internet released today numbers for the first nine months of 2016 for ‘selected companies’ in its portfolio (PDF):
HelloFresh grew 121% from 9m 2015 to 9m 2016. It is remarkable that HelloFresh, one of the largest companies in Rocket’s portfolio and candidate for an IPO, still grows faster, in relative as in absolute terms, than any other Rocket company:
Meals delivered grew from 32.3 million for 9m 2015 to 66.9 million for this year’s first 9 months. More important, active subscribers grew from 542.100 by 55.6% to 843.800 in the same timeframe.
At last year’s Noah conference HelloFresh talked about how the company wants to reach yearly revenue of $10 billion – and what is so great about the meal-kit business model:
Blue Apron, the grocery startup that ships boxes of recipes and ingredients to the homes of wannabe chefs, is on track to surpass $1 billion in revenue over the next 12 months, multiple sources familiar with the company’s financials told Recode.
The $1 billion-plus figure — known as annualized run rate — does not represent the company’s projected 2016 revenue. Rather, it marks the number Blue Apron would hit over the next 12 months if it keeps matching or surpassing recent monthly sales totals.
Research data from 1010data hinted at Blue Apron generating three times the sales of HelloFresh in the US.
By virtue of being part of publicly traded Rocket Internet, we know far more about HelloFresh than we do about Blue Apron. This should change soon once Blue Apron, or both, go public.
There are hints meal-kit providers in general are confronted with a rather high customer churn rate.
As I have been pointing out, this is almost certainly a consequence of every company in the space still operating at sub-scale while the meal-kit model only works properly at scale.