Grocery delivery company Instacart files for long-awaited IPO
Grocery delivery company Instacart is going public
Grocery delivery company Instacart is going public.
The San Francisco-based company filed paperwork Friday with the U.S. Securities and Exchange Commission. The IPO is expected to happen in the next few weeks.
Instacart said it plans to trade on the NASDAQ stock exchange under the stock symbol “CART.” The number of shares and the price haven’t yet been determined, the company said. PepsiCo has agreed to buy $175 million in convertible preferred stock in a private placement, Instacart said.
In a letter to investors, Instacart CEO Fidji Simo said online grocery has tremendous potential. The U.S. grocery market is a $1.1 trillion industry, but only 12% of sales are made online. She expects that to at least double over time.
“We have demonstrated our ability to help our retail partners drive strong growth and stay competitive in a complex and increasingly digital industry,” Simo wrote.
The IPO is a long-awaited step for Instacart, which was founded in 2012. The company filed privately for an IPO in May 2022 but delayed those plans last fall when the markets were roiling due to recession fears. There were just 71 IPOs in the U.S. last year, the lowest number since 2009, according to Renaissance Capital.
But a resurgent market is seeing more IPO activity this year. Fifty-two IPOs were held in the first half of this year, Renaissance Capital said. Renaissance said Instacart could raise up to $1 billion with its offering.
Instacart provides delivery from 85% of U.S. grocers, or more than 80,000 stores. The company says it has 7.7 million active customers who spend about $317 per month on Instacart.
In its IPO filing, Instacart said its orders grew 18% between 2021 and 2022 to
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