Instacart's Growth Continued in Q2 Ahead of IPO - WSJ

August 22, 2022 3:44 PM EDT

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US grocery delivery firm Instacart experienced significant growth during the pandemic, as consumers flocked to the service during lockdowns.

That growth continued in the second quarter, with consumers sticking to online grocery deliveries despite soaring inflation and store reopenings ahead of its initial public offering, the WSJ said on Monday.

The company is preparing to go public later this year despite what the WSJ describes as potentially one of the slowest years for IPOs in decades.

Various tech stocks have seen a significant drop in value. In March, Instacart itself said it was slashing its valuation by nearly 40% to approximately $24 billion as a result of the selloff in technology stocks. The selloff has added pressure to companies looking to go public.

But, according to the WSJ, citing people familiar with the matter, Instacart's revenue during the three months ended in June rose 39% from the previous year to $621 million, boosted by a 25% increase in orders on its app, representing the highest quarterly revenue in Instacart's history. In the first quarter, revenue was said to have risen 15% year-over-year.

The company turned a profit in the second quarter, the WSJ claimed, although it could not determine the exact amount.

In addition, Instacart's growth is reportedly partly down to new consumer price plans. While the numbers are nowhere near the development it experienced during the pandemic, it is still a great boost ahead of its public listing, which is said to occur as soon as this year, although it is not yet definite and could change.

By Sam Boughedda

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