Instacart, the innovative grocery delivery company, has officially filed its paperwork to go public on the Nasdaq under the ticker symbol “CART.” This move marks the first significant venture-backed tech IPO since December 2021. In its prospectus, Instacart revealed that it generated $114 million in net income and achieved $716 million in revenue in the latest quarter. Notably, this was the fifth consecutive profitable quarter for the company.
CEO Fidji Simo expressed her vision for the future of grocery shopping, emphasizing the importance of creating a seamless omni-channel experience that combines online and in-store shopping. Instacart aims to bring the best aspects of online shopping into physical stores and vice versa.
Founded in 2012, Instacart will join the ranks of other gig economy companies that have gone public, such as Airbnb, DoorDash, Uber, and Lyft. However, these companies have not performed well in the stock market, with only Airbnb currently trading above its IPO price.
Instacart experienced a surge in demand during the Covid-19 pandemic as consumers sought to avoid public places. However, profitability has been a challenge for the company, as is the case for many gig economy companies, due to high costs associated with contractor payment.
Fidji Simo took over as Instacart’s CEO in August 2021, bringing her expertise from her previous role as head of Facebook’s app at Meta. Apoorva Mehta, Instacart’s founder and executive chairman, plans to transition off the board following the IPO.
The IPO market has been relatively closed since late 2021, but Instacart aims to change that trend. The company will be one of the few independent grocery delivery companies to go public, distinguishing itself from competitors like Amazon Fresh, Walmart Grocery, and Google Express, which are all units of larger corporations.
Sequoia Capital and DJ Capital Partners are among the major shareholders in Instacart, with interests in purchasing additional shares in the IPO. This IPO is expected to generate significant interest and could potentially revive the venture-backed tech IPO market.
Overall, Instacart’s decision to go public is a significant milestone for the company and the tech industry as a whole. The success of this IPO could pave the way for other venture-backed tech companies to follow suit.
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