Meal-kit delivery company Blue Apron Inc. has put preparations for an initial public offering on hold, people familiar with the matter said, delaying selecting bankers while it focuses on improving its financial metrics. After starting to interview banks in September to advise on the IPO, Blue Apron has pushed back formally hiring underwriters until some time next year, said the people, who asked not to be identified because the details aren’t public.
Even with more than $800 million in annual revenue this year, the company has struggled to improve profit margins as much as management wanted in the face of more competition, the people said. A stronger performance is needed to support the $3 billion valuation that the company was targeting in an IPO. [ Bloomberg ]