Instacart marks up to nearly $9.3 billion valuation for much-eager IPO

September 18, 2023: Instacart is marking a valuation of nearly $8.6 billion to $9.3 billion in its imminent IPO, a fraction of what the grocery-delivery business was previously worth, in the belatedly warning of reduced investor enthusiasm for private growth businesses.

Despite that, the largest grocery delivery company in the U.S. is seeking a valuation of billions of dollars less than what it was worth a few years back.

In 2021, the business was valued at $39 billion, but a more recently challenging climate for online delivery has dragged its worth down.

Instacart wants to offer 22 million total shares when it debuts on the Nasdaq, including from current shareholders, and could raise to $660 million. According to the company’s securities filing, PepsiCo has also agreed to purchase $175 million in a concurrent private placement.

Despite upping its price range the day after a successful Arm Holdings debut, Instacart’s valuation has dropped significantly since 2021, when it raised $265 million at a $39 billion valuation.

According to the securities filing, the firm has shifted a profit in recent months, reporting a net income of $242 million for the first six months of 2023, compared to a net failure of $74 million in the year-ago period.

This month is already shaping up to be busy for initial public offerings. Beyond Arm Holdings and Instacart, marketing automation company Klaviyo, and biotechnology firm Neumora are set to list soon.

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