Instacart is heading from the supermarket to the stock market. The San Francisco-based grocery delivery company raised USD 660 million in its initial public offering of stock, selling 22 million shares at USD 30 apiece.
Its shares were set to begin trading on Tuesday on the Nasdaq stock exchange under the stock symbol «CART».
The pricing of the IPO gave Instacart a market value of around USD 10 billion, significantly lower than the USD 39 billion value placed on it after a fund-raising round in 2021.
Instacart provides delivery and pickup from 85 per cent of US grocers, or more than 80,000 stores, using a network of 600,000 freelance shoppers. It also provides in-store technology, like smart carts and electronic shelf tags, and sells online ads to food companies and retailers.
It says it has 7.7 million active customers who spend about USD 317 per month on the platform.
In a letter to investors earlier this month, Instacart CEO Fidji Simo said grocery delivery has tremendous potential. The US grocery market is a USD 1.1. trillion industry, but only 12 per cent of sales are made online. She said 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,» wrote Simo, a former Facebook executive who became Instacart's CEO in 2021.