Instacart, the popular grocery delivery service, is aiming for a valuation of up to $9.3 billion in its upcoming U.S. initial public offering (IPO). This valuation is significantly lower than its previous valuation, which stood at $39 billion during its last funding round. The company plans to raise up to $616 million by offering 22 million shares at a price range of $26 to $28 per share.
To bolster its IPO, Instacart has secured commitments from cornerstone investors such as Norges Bank Investment Management, TCV, Sequoia Capital, D1 Capital Partners, and Valiant Capital Management, who have agreed to purchase up to $400 million worth of shares. Additionally, soft drink giant PepsiCo has agreed to buy $175 million in preferred convertible stock from Instacart.
This IPO is expected to take place in September, marking a significant milestone for the company as it has been almost three years since Instacart selected Goldman Sachs to prepare for its public debut. Furthermore, Instacart’s IPO will join the ranks of SoftBank’s chip designer Arm and marketing automation firm Klaviyo, who are also preparing for market debuts in September. This could potentially boost the U.S. IPO market and attract more investor interest.
Instacart, founded in 2012, has established itself as a leading platform for app-based ordering and quick delivery services. The company partners with major grocery stores and has expanded its services to include non-grocery goods. With the COVID-19 pandemic driving increased demand for online grocery shopping, Instacart has experienced significant growth.
Goldman Sachs and J.P.Morgan have been appointed as the lead underwriters for Instacart’s IPO. As the IPO date approaches, investors and market observers will closely watch how Instacart fares in the public markets and assess its future growth prospects.