Grocery delivery firm Instacart going public? All you need to know

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Grocery delivery firm Instacart going public? All you need to know

 Grocery delivery firm Instacart going public? All you need to know
Image source: Athitat Shinagowin, Shutterstock

Highlights

  • The California-based Instacart might go public either through an IPO or direct listing.
  • The retailer serves in more than 5,500 cities in the US and Canada.
  • Instacart was valued at US$39 billion after a funding round of US$265 million in March 2021.

Online grocery delivery company Instacart might go public either through an initial public offering (IPO) or direct listing as early as next year, reports said.

The California-based retailer might go public in early 2022, according to some observers.

The company has not yet filed the IPO papers with the Securities and Exchange Commission (SEC). But some analysts said that it might also take the direct listing route.

Instacart serves customers in more than 5,500 cities in the US and Canada.

Its IPO has been one of the most-anticipated public offers this year. Many investors have been waiting for its stock debut.

Grocery delivery firm Instacart going public? All you need to know

In recent comments, Instacart CEO Fidji Simo had revealed plans to expand the business. Some analysts believe the IPO was getting delayed due to its preoccupation to expand its services.

The retailer has been stepping up efforts to expand its grocery delivery service to new areas. For instance, it has invested heavily in advertising and tech tools to market its products.

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Both Instacart’s CEO Fidji Simo and President Carolyn Everson are former Facebook employees.

Investors believe their interest in using tech tools to drive sales might be due to their previous association with the social media company.

Everson served as the global advertisement chief of the Meta Platforms, while Simo was the former head of the Facebook app.

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 Instacart is one of the most awaited IPO, but the firm is focusing on expanding its business model

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The current valuation of Instacart

Instacart was valued at US$39 billion after a funding round of US$265 million in March 2021.

Its value rose from US$3.4 billion in 2017 to US$7.6 billion in 2018 and US$17.7 billion in October 2020. It raised over US$2 billion through some 14 rounds of venture capital funding.

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Bottomline


In the first three months after Fidji Simo joined the firm as CEO, Instacart bought two companies: catering software firm FoodStorm, and self-checkout "smart" cart startup Caper AI for around US$350 million, Instacart’s largest acquisition ever, Bloomberg reported. The company runs 40,000 stores in more than 5,500 cities in the US and Canada.

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