Boxed, the combination ecommerce retailer and enabler that serves both consumer and business customers, is seeking additional funding — or a possible sale — as it explores strategic alternatives. The company’s Board of Directors has retained both financial and legal advisers as it contemplates Boxed’s next moves, which could include a funding announcement within the next 45 days.
The Boxed retail operation provides bulk pantry consumables to businesses and household customers without requiring any type of big box membership. Its services are powered by Spresso, the company’s own software and service business.
In Q3 2022, Boxed had $41.7 million in net revenue, 15% less than the same period the previous year, driven primarily by declines in the company’s software and services revenue. Retail generated nearly all the company’s net revenue, rising $3.4 million over Q3 2021 to $41.6 million. Overall, the company’s net loss of $26.4 million in Q3 was more than 4X the net loss of $5.9 million reported during the same period the previous year.
Boxed also has been dealing with low share prices for its stock: in October 2022, the New York Stock Exchange warned the company that it had six months to bring its stock price above $1 over 30 consecutive days to comply with NYSE regulations. As of Jan. 9, 2023, Boxed was trading at $0.37 per share.
The company went public relatively recently; Boxed announced its plans to do so in June 2021 as part of a merger with Seven Oaks Acquisition Corp. In August 2022 Boxed partnered with TerraCycle to enable packaging recycling for home and personal care products