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Published 15 days ago

Instacart prices IPO at $30 a share, valuing grocery delivery company at about $10 billion

  • Grocery delivery app Instacart, the parent company of Maplebear Inc, priced its IPO at the top of its indicated range, fetching a fully diluted valuation of $9.9 billion. This is significantly lower than the $39 billion valuation during a private fundraising round in 2021, attributed to the surge in demand for grocery delivery due to the COVID-19 pandemic.
  • Instacart has transitioned from sacrificing growth for profitability and has proved that its business model can generate earnings. In the second quarter of 2022, the company reported $114 million in net income, a significant increase from the $8 million reported the previous year. This shift in focus has resulted in a decrease in revenue growth compared to the early months of the pandemic.
  • Instacart faces competition from retail giants such as Amazon, Target, and Walmart, which offer their own delivery services. Despite this, Instacart has continued to generate revenue by delivering groceries from various chains like Kroger, Costco, and Wegmans.
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