As we already know, there are a lot of popular grocery delivery services around the world and it is also worth noting that a lot of them have failed due to one reason or the other. However, those who have survived all the hassle even during the pandemic are taking advantage right now because of the fact that this sector is booming once again and popular services such as Instacart and others are now planning to go public as well. Talking about Instacart, it is one of the first grocery delivery services to go public with an IPO being launched very soon by the company.
Also, it has been announced that the share price of Instacart per share will be $30 which means that the company’s valuation also goes above the $10 Billion mark which is just insane if you think about it as a grocery delivery company that promises to deliver in just an hour which is one of its biggest USP as well. However, we also need to be skeptical about the launch of IPO from a company too because we have already seen what happened to WeWork once they released their IPO and there are many other examples as well.
As per the report from CNBC, “There were 22 million shares sold in the initial public offering, with 14.1 million coming from the company and 7.9 million from existing shareholders. The stock is set to debut on the Nasdaq Stock Market on Tuesday under the ticker symbol “CART.” Instacart has sacrificed growth for profitability, proving in the process that its business model can generate earnings. Revenue increased 15% in the second quarter to $716 million, down from growth of 40% in the year-earlier period and about 600% in the early months of the pandemic. The company reduced its headcount in mid-2022 and lowered costs associated with customer and shopper support”.
It is also worth noting that “Instacart started generating earnings in the second quarter of 2022, and in the latest quarter reported $114 million in net income, up from $8 million a year prior”. We have been told that “Instacart co-founder Apoorva Mehta owns shares worth over $800 million, and is selling a small portion of them in the IPO”.