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Instacart Targets IPO At $30B Valuation Early Next Year: Report

Instacart Targets IPO At $30B Valuation Early Next Year: Report

San Francisco-based grocery delivery company Instacart Inc is considering an initial public offering early next year at a $30 billion enterprise valuation, according to Reuters. The grocery e-tailer has reportedly engaged Goldman Sachs Group Inc (NYSE: GS) as the lead book runner.

What Happened: Since its inception in 2012, Instacart has raised $2.4 billion in 14 funding rounds, as per data from Crunchbase.

Last month, Instacart’s valuation was estimated at $17.7 billion when it secured $200 million in funding. Reportedly, the proceeds would be partly deployed to enhance the app’s user experience, and the balance to improve app features like the Instacart Enterprise and Instacart ads.

In August, the company entered into a partnership with Walmart Inc (NYSE: WMT) to provide same-day deliveries to the retailer's customers.

Why Does It Matter: The grocery e-tailer says its services are accessible to around 85% of U.S. households and approximately 70% of households in Canada.

Instacart stands to benefit from the approval of Proposition 22, a ballot measure in California that allows delivery companies and roadrunners to classify delivery staff as independent contractors instead of employees. Other companies operating on similar business models like the ride-sharing app Uber Technologies Inc (NYSE: UBER), DoorDash Inc, LYFT Inc (NASDAQ: LYFT) will also witness a positive impact.

Food delivery company and Instacart's market peer in the business segment, DoorDash Inc is also targeting an IPO this year.

Photo by Kristin Sloan on Flickr


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