Once Upon a Farm, PBC IPO Explain

Once Upon a Farm, PBC is a U.S. organic and refrigerated children’s food company based in Berkeley, California. It was founded in 2015 by Cassandra Curtis and Ari Raz, with actor Jennifer Garner and John Foraker joining as co-founders later, to provide fresh, organic, nutrient-rich foods with no added sugars or preservatives. The company sells products like cold-pressed pouches, refrigerated oat bars, frozen meals, dry snacks and other organic kid-friendly foods through major retailers and online channels.

Once Upon a Farm filed for an initial public offering (IPO) on the New York Stock Exchange (NYSE) under the ticker symbol “OFRM”. The planned IPO aims to raise up to approximately $209 million (~₹1,725 cr at ~₹82/$) by offering around 10.99 million shares at a price range of $17 to $19 per share. The IPO includes a mix of primary (company) shares and secondary shares by existing stockholders.

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	Secondary + Primary U.S. NYSE IPO
Listing Exchange	New York Stock Exchange (NYSE)
Ticker Symbol	OFRM
Price Range	$17 – $19 per share
Shares Offered	~10,997,209 shares
Primary Shares	~7,631,537 (offered by company)
Secondary Shares	~3,365,672 (existing stockholders)
Underwriters’ Option	Up to 1,649,581 additional shares
Target Proceeds (Primary)	~$198-209 million (~₹1,600-1,725 cr)
Valuation Estimate	~$764.4 million ≈ ₹6,300 cr-₹6,800 cr implied valuation

Note: This is a U.S. IPO with both primary and secondary components (existing shareholders selling). The price range and valuation reflect strong retail and institutional interest in branded consumer food businesses.

Selling Shareholders / Secondary Offering

• Existing investors are selling ~3.36 million shares (secondary portion), meaning some proceeds from these shares go to those holders, not the company itself.
• The primary portion of ~7.63 million shares is sold by the company itself, with proceeds going to corporate use.

Objects of the Issue (Fund Utilization)

The company plans to use IPO proceeds for:

1. Repaying outstanding debt and credit facility balances to strengthen financial position.
2. Purchasing equipment and capital expenditures to increase production capacity and efficiency.
3. General corporate purposes, including investments in distribution, marketing, and working capital.
4. Possible strategic initiatives to support product innovation and supply chain expansion.

Strategic Context:

• Strengthening balance sheet and capacity through capex should enable scaling production for major retailers.
• Marketing and wider distribution can enhance brand penetration in competitive organic foods and children’s nutrition space.

Lead Managers & Underwriters

• Goldman Sachs – Joint Lead Bookrunner
• J.P. Morgan – Joint Lead Bookrunner
• Bank of America Securities – Co-manager
• William Blair – Co-manager
• Barclays – Co-manager
• Evercore ISI, Deutsche Bank, Oppenheimer & Co., TD Cowen – Additional bookrunners.

Promoters & Management

• Cassandra Curtis – Co-Founder & Executive Leader
• Ari Raz – Co-Founder
• Jennifer Garner – Co-Founder & Chief Brand Officer (active brand ambassador)
• John Foraker – Co-Founder & CEO

The management combines entrepreneurial food industry experience with celebrity brand influence to drive awareness and growth, particularly in the organic and children’s food markets.

Company Details

Once Upon a Farm was founded in 2015 with a mission to transform children’s nutrition through fresh, organic, nutrient-rich food options. The company distributes products through thousands of U.S. retail locations (including Target, Walmart, Kroger, Whole Foods, Publix, and others) and online platforms. As of mid-2025, net sales had reached ~$201-226 million with a 64%+ CAGR over recent years, but the company was still reporting net losses, reflecting heavy investment in growth and market expansion.

Key Product Categories:

• Cold-pressed fruit & veggie pouches
• Refrigerated oat bars
• Frozen meals for kids
• Dry baby snacks and pantry items

Business Model:

• Retail distribution (brick-and-mortar supermarkets)
• E-commerce & online partners
• Branded cooler presence in stores to increase impulse buying

Financial Snapshot

Period / Metric	Data
Net Sales (12 mo ending Sep 30, 2025)	~$201.6 million
CAGR (Since 2018)	~64.6%
Net Loss (12 mo ending Sep 30, 2025)	~$48.1 million
Gross Margin	~41.7% (mid-2025)

Analysis:

• Strong revenue growth trajectory driven by product expansion and distribution reach.
• Lack of profitability is a concern but not unusual for disruptive consumer-packaged brands focusing on scale.
• Gross margins have improved, suggesting better operational efficiency.

Company Strengths

1. Rapid growth in organic children’s nutrition category with strong retail distribution presence.
2. High consumer demand for fresh, clean-label products with broad product diversification.
3. Celebrity co-founder Jennifer Garner enhances brand visibility and marketing reach.
4. Innovative product pipeline extending from baby to broader kids’ snacks and meals.
5. Strong partnerships with major retailers (Target, Walmart, Kroger, etc.) boosting shelf placement.
6. Experienced management team with consumer goods leadership experience.

Key Risks & Challenges

1. Not yet profitable – ongoing losses may concern investors seeking earnings.
2. Competitive CPG industry with large incumbents and niche organic brands.
3. Supply chain & tariff risks, particularly sourcing from Mexico & South America.
4. Dependency on large retailers for distribution may reduce pricing leverage.
5. Consumer spending sensitivity – premium organic products can be cyclical in tougher economic climates.

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Disclaimer

This document is for educational and informational purposes only and does not constitute investment advice. Investors should read the company’s SEC registration statement and prospectus and consult financial advisors before investing. Past performance is not indicative of future results and securities investments involve risks.