Grocery delivery company Instacart, which saw its valuation slashed last year in the market, Documents for publication On Friday, it will be the first major venture-backed technology IPO since December 2021.
The shares are listed on the Nasdaq under the ticker symbol “CART.”among them prospectusThe company said net income totaled $114 million and revenue for the latest quarter reached $716 million, up 15% year-over-year. Instacart has now been profitable for five consecutive quarters, according to filings. PepsiCo has agreed to purchase its shares in a private placement for $175 million.
Instacart said it will continue to focus on building artificial intelligence and machine learning capabilities into its platform and expects the company to “rely on AIML solutions to drive the future growth of our business.” Stated. Instacart announced in May that it was embarking on a generative AI boom with Ask Instacart, a search tool aimed at answering customers’ grocery shopping questions.
“We believe the future of groceries is not a choice between online and in-store shopping,” CEO Fiji Simo said in the prospectus. “Most of us are going to do both, so we want to create a true omnichannel experience that brings the best online shopping experience to physical stores and vice versa.”
Instacart will attempt to tap into the IPO market, which has been largely closed since late 2021.In December of the same year, a software vendor Hashi Corporation and SamsaraThe company, which develops cloud technology for industrial companies, went public, but since then there have been no notable venture-backed tech IPOs. Japan’s SoftBank-owned chip designer Arm on Monday applied to list on the Nasdaq.
Founded in 2012, it was originally incorporated as Maplebear Inc., Following its debut in 2020, Instacart will join the ranks of so-called gig economy companies on the open market. Airbnb and door dash and car sharing companies uber and lift one year ago. Airbnb is the only company currently trading above its IPO price, so it’s not a very good bet for investors.
According to the Instacart website, Instacart shoppers and drivers deliver goods from more than 40,000 grocery and other stores in more than 5,500 cities. The business took off as consumers avoided public places during the coronavirus pandemic. But like in many areas of the gig economy, profitability has always been a major challenge due to the high costs involved in paying every contractor.
According to Instacart, headcount peaked in the second quarter of 2022 and “decreased over the next two quarters, reducing the fixed operating cost base.” At the end of June, the company had 3,486 full-time employees.
Last March, Instacart cut its valuation from $39 billion to $24 billion after a decline in its public stock. Valuations reportedly dropped another 50% by the end of 2022. Instacart cited Amazon, Target, Walmart and DoorDash as competitors.
The biggest area of cost savings is general and administrative expenses. These charges narrowed to $51 million in the latest quarter from $77 million in the same period last year and a peak of $102 million in the end of 2021. Instacart said the decline was “as a result of lower fees related to legal issues and settlements.”
Simo became CEO of Instacart in August 2021 and chairman of the company’s board in July 2022. She was previously in charge of the Facebook app. meta Reported directly to CEO Mark Zuckerberg. Instacart founder and executive chairman Apoorva Mehta plans to step down from the board after the company’s public market debut, according to a 2022 release.
The company’s board of directors also includes: Peloton CEO Barry McCarthy snowflake CEO Frank Slottman and Jeff Jordan of Andreessen Horowitz.
Instacart will be one of the first independent grocery delivery companies to go public. Amazon Fresh, walmart groceries and Google All Express are divisions of large corporations. Shipt was acquired by the goal In 2017, Fresh Direct, another direct-to-consumer grocery delivery company, was acquired by global food retailer Ahold Delhaize in 2021.
Sequoia Capital and D1 Capital Partners are the only shareholders with at least a 5% stake. Instacart said the two companies, along with Norges Bank Investment Management and affiliates of TCV and Valiant Capital Management, would “individually, but not jointly, purchase IPO shares of up to $400 million at the public offering price.” I am interested,” he said.
Instacart’s move to AI has largely been driven by a series of acquisitions over the past two years. The deals include e-commerce startup Rosie, AI-powered pricing company Eversite, AI shopping cart and checkout solutions provider Caper, and software startup Foodstorm, which specializes in self-serve kiosks for in-store customers. including the acquisition of
The company also touted its use of machine learning to predict grocery availability for retailers and increase consumer sales. The company’s algorithm predicts inventory status for the “majority” of its 1.4 billion groceries every two hours, and by Q2 2023, more than 70% of customers will have purchased products through Instacart’s recommendation algorithm. said to have purchased.
goldman sachs leads the offer. The person is a former employer of Instacart’s finance chief Nick Giovanni, who previously served as global head of the technology, media and telecoms group at an investment bank.
clock: Instacart file for IPO
