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Instacart IPO: The Grocery Delivery Firm Seeks a $9.3Bn Valuation

Analyst Team trader
Updated 12 Sep 2023

Grocery delivery firm Instacart is eyeing a $9.3 billion valuation at its upcoming IPO. The valuation was first leaked by a Sunday exclusive report by the Wall Street Journal, citing people familiar with the matter. The WSJ’s sources said the company would seek a valuation of between $8.6 billion and $9.3 billion. 


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The initial rumours were correct as insiders familiar with the matter spoke to the Wall Street Journal on condition of anonymity. The company might have felt insufficient demand for its shares at a higher valuation, which explains the much lower valuation the grocery delivery firm is now seeking. Today, the company launched its IPO roadshow to attract more cornerstone investors. 

Instacart is the second-largest one of three large US IPOs planned for September, with the other two being Arm and Klaviyo, with all three firms seeking valuations lower than their last private fundraising activities. For example, Instacart was valued at $39 billion in 2021, with its latest in-house valuation being $13 billion. 

The same case applies to Arm and Klaviyo. Arm is seeking a $52 billion valuation, much lower than the $63 billion valuation at which SOftaBank bought the remaining 25% of the firm it did not own from its Vision Fund. 

Instacart plans to sell 22 million shares in its IPO, with 14.1 million newly issued shares and 7.9 million from selling shareholders. The company intends to have a total float of 276 million shares or 279.3 million if underwriters exercise an option to purchase additional shares.

Some large-cap companies interested in becoming cornerstone investors for the Instacart IPO include Pepsi, which plans to buy $175 million shares in a concurrent private placement underwritten by Goldman Sachs for a 1.5% fee of the total amount raised. 

Today’s filing also indicates that Norges Bank Investment Management, Norway’s sovereign wealth fund, had also expressed interest in becoming a cornerstone investor in the firm’s IPO. Instacart generated revenues worth $1.48 billion in the six months to 30 June 2023 and made a profit of $242 million instead of the $74 million loss from a year earlier.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.