Instacart reveals IPO filing, disclosing PepsiCo investment, profitability
Instacart on Friday said its core business turned profitable after making public its filing for a long-awaited stock market launch, while also disclosing an investment from PepsiCo Inc.
San Francisco-based Instacart, which filed confidentially for its initial public offering (IPO) in May 2022, said in the filing to the U.S. Securities and Exchange Commission that PepsiCo had agreed to buy $175 million in preferred convertible stock.
Norges Bank Investment Management, a division of Norges Bank, and entities affiliated with venture capital firms TCV, Sequoia Capital, D1 Capital Partners and Valiant Capital Management have agreed to participate in the IPO as cornerstone investors, Instacart said.
For the six months ended June 30, Instacart's revenue came in at $1.48 billion, up 31% from the same period last year.
Advertising and other revenue surged 24% to $406 million. It reported net income of $242 million during the six-month period, compared to a $74 million loss a year earlier.
Instacart's push to go public comes days after SoftBank Group-backed chip designer Arm Holdings disclosed the paperwork for its IPO filing.
Like Arm and marketing automation firm Klaviyo, Instacart is expected to list its shares in September — part of a wave of high-profile names testing investor appetite for new stocks.
The market for new listings has been subdued for most of the last two years due to Russia's invasion of Ukraine and the spike in interest rates.
If successful, the listings could revitalise the U.S. IPO market, which has already seen some green shoots this year on bets that the U.S.
