Meal-kit maker Blue Apron slashes valuation expectations by a third

Blue Apron spends an average of $94 to acquire each customer, and the company is spending more on marketing in an effort to bring in and hold onto more users. That means at the low end of the range, Blue Apron would raise $300 million – 38 percent less than previously planned.E-commerce giant Inc. is expected to shake up the industry after announcing plans to buy organic grocer Whole Foods earlier this month.And the company faced scrutiny previous year after a report of violence and intense working conditions at its Richmond warehouse. That initial public offering (IPO) aimed to raise about $500 million and would have valued Blue Apron around $3 billion.Balancing investor concerns with market realities has proven hard for Blue Apron, and its new valuation and stock pricing reflects a compromise between those two influences. Although Blue Apron’s net revenue grew from $78 million in 2014 to $795 million in 2016, its losses increased to $55 million last year from $31 million two years earlier. Amazon bought Whole Foods. Akcea is looking to sell 9.6 million shares, expected to price between $12.00 and $14.00 per share, according to the company.Not so fast. On Wednesday meal delivery service Blue Apron filed updated IPO paperwork with a revised price range of $10 to $11 per share.The company has also yet to make a steady profit. Normally these price ranges move around, but this is a pretty significant haircut for a company that looked like it was having a better 2017 aside from heavy burn on marketing and growth. Following the example of camera company Snap, which went public in February, the company plans to offer class C non-voting shares. Blue Apron generated $795 million in revenues past year, up from $341 million in 2015.Bessemer Venture Partners, Stripes Group and Fidelity are among Blue Apron’s investors.