Boxed eyes increased funding to drive profits

Following the recent announcement that its stock was in danger of being delisted from the New York Stock Exchange, wholesale grocery ecommerce company Boxed said it hopes that anticipated new funding will help drive it toward profitability.

“I don’t think the stock price reflects how exciting the current situation is for us,” said Chieh Huang, co-founder and CEO of Boxed, in a webcast with investment firm UBS on Tuesday.

He said the company was “aiming for the end of the year to announce something” related to its financing efforts.

“Assuming we get that done … if we’re able to bridge us to profitability using those funds, things get really, really exciting.”

In the third quarter, Boxed reported a loss of $26.4 million on revenues of about $41.7 million.

Huang said the company has been making traction improving its financial metrics and is eying multiple avenues for growth.

As previously reported, Boxed operates three lines of business: a B2C ecommerce arm delivering groceries in bulk directly to consumers; a B2B ecommerce arm delivering groceries to businesses, including airlines, airports, office buildings and others, and software solutions for ecommerce called Spresso.

Huang said the company’s B2B business, where orders average $300 and carry higher margins than its B2C sales, has rebounded sharply since a downturn during the pandemic.

Related:Boxed posts nearly 9% retail revenue gain for Q3

“It’s people coming back to the office,” he said, noting that office order size and frequency have remained elevated despite an increase in people working from home.