Instacart IPO: Everything You Need to Know

April 13, 2023 3:30 pm
Published by: David Richardson

With the company’s stellar growth over the last decade, many people are wondering about investing in Instacart stock.

In this guide, we’ll walk you through everything you need to know about the Instacart IPO and the company finances. Let’s dive right in!

About Instacart

Instacart is an American company specialising in food and grocery pick-up/delivery services.

The company was founded in San Francisco by Apoorva Mehta, an Indian-Canadian entrepreneur and former Blackberry, Amazon, and Qualcomm employee.

Mehta’s participation in the startup accelerator “Y Combinator” led him to establish Instacart along with Max Mullen and Brandon Leonardo in 2012.

Throughout the years, the company expanded its coverage by operating in various locations in the United States.

As the company grew, Instacart acquired several companies, including Unata, Eversight, Foodstorm, Caper AI, Rosie, and more.

As of 2022, Instacart operates in the United States and Canada with over 10,000 employees hired, according to Zippia.

How Does Instacart Make Money?

Instacart earns money through various streams and methods. The company charged a subscription fee for its premium service Instacart Express (no longer available).

The company also makes money by charging a markup on some products, delivery fees, and in-app advertising and promotions.

Lastly, the company earns a large chunk of its income through revenue sharing as well as funding and investment rounds.

Instacart Funding Rounds and Top Investors

Instacart raised over $2.9 billion over a series of 19 funding rounds. Here’s a quick look at the prominent funding rounds and main investors of the company.

  • On October 15, 2012, Instacart raised a seed round of $2.3 million from 6 investors, including Khosla Ventures, Funders Club, and 4 others.
  • In 2013, the company raised a total of $8.7 million from two early-stage ventures ($8.5 and $0.2) under the name of “Series A - Instacart”.
  • On June 16, 2014, another early-stage venture under the name of “Series B - Instacart” raised a total of $45 million led by Andreessen Horowitz, Y Combinator, and 7 others.
  • On January 13, 2015, a late-stage venture under the name of “Series C - Instacart” raised a total of $220 million led by Kleiner Perkins, Valiant Capital Partners, and Unilever Ventures for a total of 11 investors.
  • On March 8, 2017, another late-stage venture under the name of “Series D - Instacart” raised a total of $400 million led by Sequoia Capital along with 10 other investors.
  • In 2018, the company raised a total of $950 million through several rounds in February and April.
  • In October and November 2018, Instacart raised its largest funding round to date at $600 million (led by D1 Capital Partners) and $271 (led by Tiger Global Management), bringing the annual total to $1.82 billion.
  • On September 10, 2019, a funding round under the name of “Secondary Market - Instacart” raised an undisclosed amount by KG Investments.
  • On June 11, 2020, a funding round under the name of “Venture Round - Instacart” raised $225 million from 3 investors: “General Catalyst”, “DST Global”, and “D1 Capital Partners”. The company also received a private equity fund from T. Rowe Price in July
  • On October 8, 2020, a funding round under the name of “Venture Round - Instacart” raised $200 million from 2 investors: “Valiant Peregrine Fund” and “D1 Capital Partners
  • On March 2, 2021, a funding round under the name of “Venture Round - Instacart” raised $265 million from multiple investors, including “Fidelity Management and Research Company”, “T. Rowe Price”, “Sequoia Capital”, and 2 others.
  • On September 5, 2021, a funding round under the name of “Secondary Market - Instacart” raised an undisclosed amount from Manhattan Venture Partners
  • On November 1, 2021, a final funding round under the name of “Venture Round - Instacart” raised $232 million from undisclosed investors.

Instacart IPO Outlook

After multiple rounds of investment over the years, Instacart reached a record valuation of around $40 in early 2022. However, later in the same year, the company slashed its own value to around $10 billion to adapt to market changes.

The first attempt for Instacart to launch an IPO was in 2021. The company submitted a registration draft with the U.S. Securities and Exchange Commission (SEC) to go public.

However, the company is yet to announce a clear timeline for its Initial Public Offering, despite being due in 2022.

Although there aren’t enough details about the fate of the SEC filing, no reports came out about Instacart pulling the IPO submission.

Instead, The New York Times and other sources believe that the company is waiting for a more suitable time to go public.

Wrap Up

As you can see, multiple factors and unfavourable conditions are causing delays in the Instacart IPO.

While there isn’t a clear date of when this will happen, it should technically be as soon as the market conditions improve. Many investors are eagerly awaiting Instacart shares to become available, and who knows what the Instacart share price or valuation will be at that time?

View The Instacart Pre-IPO Brochure

The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions. We hold no stock or interests in any of the Companies discussed on this website/app.

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