Tech IPO Revival

Tech IPO Revival

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  • Grocery delivery company Instacart has submitted its IPO filing for listing on Nasdaq. This marks the first technology company's initial public offering financed by private investors since December 2021. Despite lowering its valuation from $39 billion to $24 billion last year, Instacart reported a net profit of $114 million and a revenue of $716 million in the previous quarter, signifying a 15% growth compared to the same period in the previous year.
  • Notably, Instacart has secured a private placement with PepsiCo agreeing to purchase $175 million of its shares. This announcement follows closely after Arm, a chip designer backed by SoftBank, revealed its intent to go public on Nasdaq, potentially becoming the year's largest IPO. This move adds to the recent trend of prominent companies testing investor interest in new shares.

Why it matters

The company confirmed that it will continue to focus on integrating AI and machine learning features into its core business system to help drive future growth. Similar to the AI boom, "Ask Instacart" is a search tool that aims to answer customer questions about buying groceries. “We believe the future of grocery won’t be about choosing between shopping online and in-store, most of us are going to do both.” CEO Fidji Simo wrote.


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