Instacart Sets Ambitious Goal: Targets $8.6 to $9.3 Billion Valuation in IPO, Says Reports

The grocery delivery company Instacart is aiming to go public at a valuation between $8.6 billion and $9.3 billion, according to reports.

Instacart is expected to officially disclose its expected valuation range on Monday, as Reuters reports. The initial report from the Wall Street Journal highlights the company’s target valuation range.

As Instacart prepares to market its IPO to investors, the valuation could still change, but the current figures indicate a significant change from its previous worth. Last year, during the market downturn, Instacart reduced its valuation from $39 billion to $24 billion. Further reductions brought the valuation down by another 50% by late 2022.

Despite this reduced valuation range, Instacart’s upcoming IPO is expected to have a noteworthy impact on the dormant tech IPO market. Since December 2021, there have been no notable venture-backed tech IPOs.

In a similar move, chip designer Arm, owned by Japan’s SoftBank, filed for its own IPO in August.

Instacart experienced significant growth during the Covid-19 pandemic as consumers sought alternatives to crowded public places. However, profitability has remained a challenge as shoppers returned to physical stores. The company boasts over 14,000 cities and more than 80,000 grocers and stores in its delivery network.

With its upcoming IPO, Instacart will join other gig economy companies like Uber, Airbnb, Lyft, and DoorDash on the public market. The company’s stock is expected to trade on the Nasdaq under the ticker “CART,” and Goldman Sachs is leading the offering.

–CNBC’s Hayden Field contributed to this report.

Correction: This story has been updated to reflect the correct figures for the number of cities Instacart covers and the number of stores from which its shoppers deliver goods.