After much anticipation, Instacart, the renowned grocery delivery app, has unveiled its IPO filing, detailing its plans for a stock market flotation on New York’s bustling trading floors, setting the stage for one of the most eagerly awaited IPO listing in recent memory. All of this is unfolding 15 months after Instacart’s discreet submission of its initial public offering (IPO) documents.
Within the filed documents, Instacart disclosed an impressive surge in revenue by 31%, reaching a substantial $1.48 billion during the six-month period concluding on June 30. This remarkable boost in revenue also translated to a net income of $242 million for the same timeframe, marking a striking departure from the $74 million loss recorded in the year prior. Bolstered by these commendable financial metrics, Instacart could potentially spearhead the impending wave of IPOs projected to invigorate the U.S. market following a parched spell in 2022.
Excluding special purpose acquisition companies (SPACs), this year has witnessed a cumulative capital infusion of $10.3 billion through 77 IPOs. Industry analysts are confident that this trend will gain further momentum in 2024 as the market regains stability. The critical question remains whether Instacart will find itself compelled to further revise its valuation, as it purportedly undertook in December 2022. Remarkably, the company has since escalated its valuation by an impressive 18%. Notably, before opting for an IPO, Instacart contemplated the possibility of a direct listing.
The forthcoming listing of Instacart’s shares will be steered by financial giants Goldman Sachs and J.P. Morgan, with the shares poised for trading on the Nasdaq under the symbol “CART.” This milestone listing in the market marks an undeniable vindication of the 15-month journey the company embarked upon, especially considering its valuation during the last funding round two years ago, which stood at a formidable $39 billion.
The submission of the IPO documents provides an initial insight into Instacart’s financial underpinnings. The timing is particularly significant as Fidji Simo, the CEO of Instacart who previously helmed the Facebook app, has consistently met and surpassed the objectives she set forth upon assuming leadership of the company in 2019.
Noteworthy is the juxtaposition of the listing of Instacart with the prospective IPO of Arm, the chip designer backed by SoftBank Group. As investors grow more discerning, their favor leans toward firms that not only harbor ambition but also exhibit profitability. This marks a notable shift away from the trend of favoring high-potential yet loss-incurring startups. Against the backdrop of unrelenting rate hikes by the U.S. Federal Reserve and a rapid decline in technology stocks, Instacart’s impending market debut is impeccably timed.
As the weeks progress, Instacart aspires to finalize its listing, inching closer to realizing its vision of being the ultimate hub for online grocery deliveries. This strategic move resonates deeply as it dovetails with the broader shift in consumer preferences toward online shopping and convenient doorstep deliveries. Instacart’s listing beckons not just as a financial event, but as a transformative step toward reshaping the future of grocery shopping.