Stocks have fallen again this month, and investors are keen on signs of renewed excitement in the initial public offering (IPO) market. Now, a long overdue deal that can deliver goods may soon materialize.
Online grocery platform Instacart is preparing to list on the Nasdaq as early as September, people familiar with the matter said. told Bloomberg. The company may file a Form S-1 next week with the Securities and Exchange Commission (SEC) detailing its latest plans for an IPO, according to anonymous sources.
The news comes after Instacart secretly filed with the SEC last year. Big banks Goldman Sachs and JP Morgan are reportedly ready to underwrite the deal. Market participants may hope the debut of a major platform brand like Instacart can inject energy into the still stagnant IPO market.
Pandemic upgrade
Instacart is evolve your business It has created new revenue streams since the pandemic.
These include a foray into digital media and online advertising. The platform also increased the catalog of stores you can order from. In February of this year, the platform announced Instacart Business, which aims to serve small business owners at the local level and displace Amazon and Walmart.
“want [Instacart] We aim to be the largest grocery and consumables marketplace for consumers and small businesses,” said COO Asha Sharma, who spearheaded the effort.
The platform posted strong numbers last year. Instacart’s revenue increased by more than 50% in the fourth quarter of 2022 (compared to his last three months of 2021). Gross profit also increased by more than 80%, according to an internal memo. The Wall Street Journal reported.
Benefiting from additional advertising revenue, Instacart’s total revenue grew 39% in fiscal 2022 to approximately $2.5 billion.
too late?
Nonetheless, some analysts question the timing of the launch.
Instacart is no newcomer to the platform economy. The 11-year-old company has long had an eye on the public market. Bringing the company public has been one of Fiji Simo’s clear goals since taking over as CEO in 2021. At the time, the company was valued at about $40 billion, according to PitchBook data. But its latest valuation is just a fraction of that number, around $13 billion.
Two years later, the IPO market is still struggling to regain its former momentum. Only $14 billion has been raised through IPOs on US exchanges so far this year, compared to $241 billion raised through deals through August 2021.
Due to declining valuations and sub-optimal market conditions, Jennifer Saba of Reuters, Instacart speculation The delay resulted in a ‘damaged product’. She doesn’t expect her debut to be as profitable as it was two years ago.
Interested investors should keep an eye on the latest information and be ready to answer the door at any time. This deal may end soon.