Instacart is preparing for an initial public offering (IPO) with a targeted valuation ranging from $8.6 billion to $9.3 billion. This marks a significant change from its previous valuation, which declined due to market fluctuations. Despite this, Instacart aims to rejuvenate the IPO market, which has been sluggish since late 2021. The company, which experienced a surge in demand during the COVID-19 pandemic, will join the likes of Uber, Airbnb, Lyft, and DoorDash on the public market, trading on the Nasdaq under the ticker “CART,” led by Goldman Sachs.
According to reports, Instacart, the popular grocery delivery company, is gearing up for its initial public offering (IPO) with a targeted valuation range of $8.6 billion to $9.3 billion.
A dependable source told Reuters that Instacart will formally announce its estimated valuation range on Monday. The company’s objectives for valuation were first reported by The Wall Street Journal on Sunday.
It’s worth noting that Instacart’s valuation could undergo revisions as the company engages with potential investors during its IPO marketing efforts, as mentioned in the WSJ report. However, these initial figures mark a significant shift from the company’s previous valuation. Around March of the preceding year, when public stocks faced a downturn, Instacart lowered its valuation from $39 billion to $24 billion. Subsequently, by the end of 2022, the valuation reportedly declined by an additional 50%.
Despite the adjusted valuation range, Instacart is taking a noteworthy step to revitalize the somewhat dormant IPO market, which had largely remained closed since late 2021. Notably, there had been no noteworthy tech IPOs backed by venture capital since December of that year.
Similarly, in August, the chip designer Arm, owned by Japan’s SoftBank, initiated the process of going public.
Instacart experienced a surge in demand during the Covid-19 pandemic as consumers sought to avoid crowded public places. However, as shoppers gradually returned to physical stores, profitability has remained a persistent challenge. The company’s extensive reach encompasses delivery services in over 14,000 cities, servicing more than 80,000 grocers and various stores.
Instacart is set to join the ranks of gig economy companies such as Uber, Airbnb, Lyft, and DoorDash on the public market. The company’s stock is anticipated to trade on the Nasdaq exchange under the ticker symbol “CART,” with Goldman Sachs leading the offering.