5 Things to Know About the Upcoming Instacart IPO

September 14, 2021 1:32 PM EDT

Grocery delivery app Instacart is expected to have its IPO over the near term and is one of the most highly anticipated new offerings. The company has seen robust growth during the pandemic as consumers turned to delivery as the coronavirus raged. The company is hoping to continue this momentum into the future and recently hired a new CEO that will help the company in its transition as a public company.

Below are five things to know about the upcoming IPO:

1. Instacart IPO Timing: While Instacart has not yet filed its IPO documents with the SEC, it has been working with investment bank Goldman Sachs since last year. The company is expected to go public via a direct listing. The filing is expected later this year, with the IPO to follow. Given it is already well into September it is possible the IPO could be pushed into 2022.

2. Instacart IPO Valuation: Valuation is seen as high as $50 billion. In March 2021, the company raised $265 million at a $39 billion valuation. As a comparison, DoorDash (NYSE: DASH) has a valuation of ~$71 billion, while Uber (NYSE: UBER) trades around $74 billion.

3. Instacart Leadership Change: In August 2021, Fidji Simo took over as the new CEO of Instacart. Upon Simo taking over, Instacart founder Apoorva Mehta transitioned to Executive Chairman. Simo was a big get for the company. She was previously Vice President and Head of the Facebook app, which reaches billions of users. Simo is seeking to boost Instacart's ad business targeting consumer goods companies looking to boost sales through the company’s app. Simo also helped transition Facebook to a public company, so will be instrumental in the Instacart IPO.

4. Instacart IPO Backers: Pre-IPO investors include Andreessen Horowitz, Sequoia Capital, D1 Capital Partners, Fidelity Management & Research Company LLC, and T. Rowe Price Associates, Inc., among others.

5. IPO Business Prospects: Instacart delivers for more than 600 national, regional and local retailers, covering 55,000 stores across more than 5,500 cities in North America. The platform is available to over 85% of U.S. households and 80% of Canadian households. In addition, the company’s technology powers the ecommerce platforms of some of the world’s largest retailers, supporting their white-label websites, applications, and delivery solutions.

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Goldman Sachs, Sequoia Capital, IPO