Grocery delivery service Instacart has cut its valuation by several billion dollars in an updated IPO filing that says it plans to price its stock between $26 and $28 per share when it goes public next week, valuing the company at between $7.7 and $9.3 billion—a drop as much as 80% from the $39 billion valuation that came out of its March 2021 funding round.
Monday’s filing said the company is aiming to raise up to $616 million by offering 22 million shares, and investestors including Norges Bank, Sequoia capital, D1 Capital Partners and others have agreed to buy up $400 million worth of shares sold in the offering.
Instacart, which soared in popularity amid the pandemic, filed paperwork to go public in late August after years of slipping in value—its internal valuation dropped to $24 billion last March and was down to $15 billion by July of 2022, Barron’s reported, before dropping further to $12 million in April of this year.
Including restricted stock, options and warrants, Instacart could reach a value of up to $9.3 billion when it hits the Nasdaq under the symbol “CART,” Reuters reports.
Instacart acknowledged its “history of losses” in the Monday filing but said it “recently began generating profit”—Instacart brought in $1.5 billion of revenue and $242 million in net income in the first six months of 2023, an improvement from the same period last year, which saw a $74 million loss.
Instacart was founded as a grocery delivery service in 2012 and was a true pandemic darling—the no-contact shopping experience was a hit among those looking to avoid a Covid infection and it was valued at $39 billion following a March 2021 funding round. In 2020, Instacart hired Goldman Sachs to help lay the groundwork for its stock market debut and, by 2021, it had added executives from Facebook and Goldman Sachs to its executive suite. In March of 2022, Instacart announced several new services for its retail partners, including a push to help grocers build infrastructure to support 15-minute grocery deliveries.
262.6 million. That’s how many orders Instacart received in 2022, it’s Monday filing said, up 18% from 2021. Orders for the first six months of 2023 were even with the first six months of 2022.
Instacart is expected to hit the stock market next Monday, the same day as Klaviyo and a few days after British chip company Arm, which is expected to begin trading Thursday. Together, the three are among the largest IPOs since electric car maker Rivian went public in November of 2021. Klaviyo’s filing said it will offer 19.2 million shares between $25 and $27 a share. The company could raise up to $310.7 million and be valued at up to $6.8 billion.
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