Instacart IPO: All you need to know

With the rise in the trend of grocery delivery services like Instacart, grocery shopping has become easier and more convenient for consumers. The one-click ordering process and delivery of groceries in a timely manner have made shopping for groceries more accessible and enjoyable. Instacart provides a one-hour grocery delivery or pick-up service, which covers items like fresh fruits and vegetables, popular brands, and a wide range of everyday items. As such, Instacart brings in a wide range of customers, with the United States being one of the biggest markets. This article will help readers to gain a better insight into the Instacart IPO by discussing Instacart funding and valuation and the factors to watch out for.

About Instacart

Instacart is a San Francisco-based grocery delivery and pick-up service established in 2012. It was founded by Apoorva Mehta, who previously worked for Amazon and Qualcomm. Since its launch, the company has expanded to over 150 U.S. cities and most recently entered the Canadian market. The company has been growing rapidly since its inception, with Instacart’s revenue being on course to go up to $18,000,000 by 2021.

Instacart focuses on providing a grocery delivery service, which makes use of technology to enable it to deliver the right items. The company works with a network of stores and has an unmatched assortment of goods through its partnerships with brands. In the era of digitalization and automation, the company leverages its technology to provide a seamless experience for customers.

History of Instacart

Before founding Instacart, Apoorva had worked for several years as an operations manager at Amazon. In 2012, he quit his job and started Instacart to provide an example of how technology can be used to make shopping easier and deliver grocery items faster. In order to develop a viable business model, Apoorva understood that his company should be able to provide a service far superior to what existed in the market at that time.

This led Apoorva’s team to build a highly automated e-commerce platform and build relationships with grocery stores. They streamlined the process of ordering, delivery, or pickup and eventually started to incorporate additional features like digital receipts and cashless payments. Since then, Instacart has proven to be successful in the market by securing several funding rounds and spreading its service all over the U.S. and, most recently, into Canada.

What are Instacart’s services?

Currently, Instacart is available in both the United States and Canada. It provides a wide variety of products, including fresh produce, everyday staples, and general grocery items. In the United States, Instacart has partnered with supermarkets such as Costco, Walmart, Sam’s Club, CVS, Kroger, Loblaw, Publix, Sprouts, and more. The grocery delivery and pick-up service are available in more than 150 U.S. cities, including Chicago, New York, Boston, San Francisco, and Los Angeles.

Backed by the presence of over 10 million active users and more than 500,000 Instacart shoppers, Instacart has a strong following. It makes use of advanced technology like GPS and machine learning to recommend products to the customers based on their previous orders. In addition, Instacart makes use of artificial intelligence (AI) and other technologies to personalize the customer experience and offer an enhanced experience.

Instacart’s main competitors

Instacart is currently one of the leading players in the grocery delivery market. It is a direct competitor to similar services like Shipt, AmazonFresh, Grubhub, DoorDash, Postmates, FreshDirect, Walmart, Dumpling, Peapod, and others. Although the company has had its fair share of competition, it has managed to stay ahead of the curve by constantly innovating and upgrading its service.

By adapting to its customers’ changing needs, Instacart has retained its loyal customer base. Thus, the company is in a strong position to compete against rivals and other competitors in the grocery delivery industry.

Reviews and profitability of Instacart

While Instacart offers customers a seamless and convenient shopping experience, it has its share of critics. The company is notorious for having dissatisfied customers and facing numerous criticisms related to food quality, late delivery, service charges, cancellations, high prices, and lower quality of produce. To address some of the concerns pointed out by its clients, Instacart has introduced new features such as “Instacart Express” which unlocks free delivery fees and reduced service fees in the case of an order size exceeding $35.

These new features help the company increase its customer retention rates, which helps the company improve its financial bottom line. Well, the feedback from Instacart is turning out to be positive in the sense that the company is doing well across the board, with its customer satisfaction and service levels improving in recent times.

Instacart funding over the years

When it comes to the Instacart funding and valuation, the company has been able to raise a total of almost $2.9 billion since its inception. In this regard, Instacart had been valued at $39 billion in the most recent fundraising round worth $265 million, which was led by top-tier investors. The period of funding for Instacart goes back a long way, and the company has been able to secure several rounds of funding in total. The trend of funding for Instacart has been growing steadily since 2012, as the company has successfully raised a total of 19 rounds since its inception.

Instacart’s growth through the years

Instacart has been growing strongly since it was founded, and the company has evolved from being a startup to an industry leader. The net worth of Instacart has reached a whopping $2 billion. This can be attributed to the fact that Instacart has managed to expand rapidly and scale its business to meet the increasing demand of its customers.

As such, they have captured a 3% share of the total grocery e-commerce universe, which is an impressive feat. Additionally, Instacart holds a 21.5% market share in terms of goods sold online through partnered stores. With such a solid financial performance, Instacart has also been able to maintain a strong growth rate.

Instacart’s key investors

Instacart has been backed by a wide range of investors since it was founded. The list of key investors includes Y Combinator, Sequoia Capital, Andreessen Horowitz, D1 Capital Partners, Fidelity Management & Research Company LLC, and T. Rowe Price Associates, Inc. These investors have been instrumental in the success of Instacart, as they have provided the required capital and resources to scale its business. As such, the company is well positioned to expand aggressively into new markets, fund its expansion plans, and grab a dominant share in the grocery e-commerce industry.

Instacart’s funding rounds

While the initial funding raised by Instacart was backed by Y Combinator, it has been able to secure several rounds of funding since then. The company has raised a total of $2.9 billion in funding over 19 rounds and now has a post-money valuation in the range of over $10 billion. Here’s an overview of a few of Instacart’s funding rounds:

Instacart IPO

The Instacart IPO is expected to take place later this year. Going by the latest reports, the company could be gearing up to go public at some point during the second half of 2022. According to sources, Instacart has already filed with the Securities and Exchange Commission (SEC) to go public this year, signaling that it is on track to go public.

This signifies that the company is all set to become a publicly listed company, and the market is expected to witness a massive surge in the stock price of Instacart as soon as it goes public. Well, going by these reports, the post-IPO valuation of the company could be more than $24 billion.

Recent Instacart valuation or worth

The valuation of Instacart stands around $39 billion in total in a recent funding round; however, after the internal calculation held in March 2022, the valuation reached about $24 billion. But, as per Instacart’s investors, the valuation has slashed even more than this, to $14.7 billion. As such, a major drop of about 40% has come up in the Instacart funding and valuation.

Favors and challenges in Instacart IPO

Instacart is an innovative technology-based grocery delivery service. Delivery of groceries at the customers’ doorstep is the primary focus, leading to an increase in demand for Instacart. However, in terms of the Instacart IPO, there are many factors that need to be considered before going public. There is no doubt that at its discounted valuation, Instacart has become an e-commerce force to be reckoned with. As such, the drop in the valuation of Instacart may lead to a negative future outlook.

But, at the same time, it should be noted that market conditions will play a crucial role in determining the success of the Instacart IPO. In order to stay competitive in the market and maintain its leading position, it will have to keep up with the evolving technologies. Therefore, Instacart will have to move with the market trends in order to remain sustainable and profitable in the long run.

When is the Instacart IPO date?

Experts estimate that Instacart could go public in the second half of 2022. However, the exact Instacart IPO date is not confirmed yet. Instacart being a private company, the information disclosed is limited. However, the Instacart IPO has already been filed with the SEC, and the market is abuzz with rumors about it.

Instacart IPO confidential and filing details

According to reports, Instacart has already filed for an IPO with the SEC. Under the Instacart IPO registration process, Instacart is required to disclose some confidential information about its financial condition. The main purpose of going public is to raise funds to expand operations and market the product or services offered by the company.

Instacart’s expansion to the stock market

As a matter of fact, Instacart has been one of the most innovative companies in the grocery delivery space.  In the modern world, shopping is becoming increasingly convenient with online shopping and online grocery delivery services such as Instacart. As such, the expansion of Instacart by going public will help it expand its operations and become a global e-commerce business. Additionally, the increased access to capital will benefit the company’s operations and growth potential. Therefore, Instacart is all set to become a publicly listed company.

Want to know more about your company’s valuation?

The grocery e-commerce industry is growing rapidly, and Instacart has been able to capitalize on it. As such, it has managed to maintain its position as one of the leading players in this industry. However, the IPO is an important step in the company’s evolution, and there is no doubt that the expansion of Instacart into a publicly listed company will help it increase its presence in other markets as well. Eqvista is here to help companies in establishing the IPO procedure and provides full assistance in the process, including business valuations. Contact Eqvista today to learn more about our valuation services!