Also covered are how startups are fulfilling HR needs in the gig economy, what Tiffany's is doing to entice millennials, and emerging business models giving gaming companies alternative revenue streams.
Today, we discuss more M&A multiples, SE Asia’s intensifying ride-hailing competition, dog tech, and more, including:
- Did Kroger or Albertsons overpay for their meal kit companies?
- There is a lot of money going into walking your dog
- The Slack Fund is very, very active. Where is it investing?
- TL;DR on Netflix hagfishing Disney and Comcast, Grab’s competition, and sports betting bets
- Startups are filling the HR gaps in the gig economy
- Tiffany’s is targeting millennials
- New business models in the gaming industry
Meal kit company valuation multiples continue to shrink
Home Chef was acquired this week at a valuation lower than its prior financing round. Here’s a look at valuation multiples in the meal kit space.
Kroger picked up the company for $200M, with an additional $500M of incentive earnouts. Kroger just invested nearly $250M in delivery company Ocado as well, as we recently discussed.
Multiples in the meal kit space remain quite varied. HelloFresh of Germany, which went public in November 2017, trades at 1.73x. After that, the Plated acquisition by Albertsons was probably the best timed, as the company was at a 1.33 — 2.2x price/revenue multiple.
Blue Apron is trading at 0.66x. Home Chef is right in line with that at 0.66x, but if it hits its heavy earn out portion, it could climb to 2.33x.
The price/revenue multiples in summary are below:
- Home Chef — 0.66x (acquired by Kroger)
- Blue Apron — 0.66x (public)
- Hello Fresh — 1.73x (public)
- Plated — 1.33 — 2.2x (acquired by Albertsons)