From Groceries To IPO

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  • After years of contemplating an IPO, the online grocery startup, Instacart, is finally poised to take the plunge, marking another significant listing. Instacart is opting for a cautious approach by securing substantial backing from prominent investors to support its IPO. Notably, it has enlisted the participation of PepsiCo Inc., one of its strategic partners, in the offering. Instacart elevated its target for the IPO to $28 to $30 a share. On a fully diluted basis, that would value the company at $9.9 billion at the top end of the range.
  • Furthermore, Instacart has enlisted key cornerstone investors, including Norway's Norges Bank, TCV, Sequoia, D1 Capital Partners LP, and Valiant Capital Management. These cornerstone investors may acquire up to 60% of the offered shares, a notably higher proportion than what is typically observed in IPOs. This strategic move positions Instacart favorably to benefit from a potential scarcity of available shares when its stock begins trading.

Why it matters

Founded in 2012, Instacart was an early trailblazer in the realm of online grocery delivery. It reached soaring heights with a valuation of $39 billion during the COVID-19 pandemic, gaining widespread recognition as people turned to online grocery shopping while staying at home. The company adjusted its internal valuation three times in the previous year, ultimately reducing it to approximately $13 billion by October. 


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