Wholesale startup Boxed has stirred up interest in the retail world after recieving acquisition interest from Kroger and others, with Forbes predicting formal bids should roll in this week, resulting in a quick auction process. This possible acquisition represents a larger industry trend toward a convenience-based grocery market, evident in Walmart's acquisition of Jet.com and Moosejaw.
Forbes argues that, were Boxed to remain independent, it could raise additional funds and continue to grow its valuation. Boxed, whose business structures as a digital alternative to traditional memberships, offers retailers exclusive deals and locked prices, which has allowed the company to move away from the restrictions of a traditional membership.
Although Costco, Target, and Aldi have been rumored bidders as well, according to Forbes, Kroger is one of the most likely candidates, according to inside sources, who also speculate that initial offers will range from $325 million to $500 million, as the company had a 2016 valuation of $470 million.
Will Kroger beat out competitors for Boxed, or will a new player enter the game and swoop up the startup? Deli Market News will continue to report as the story unfolds.