Instacart IPO: All you need to know

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Instacart IPO

Instacart, a grocery delivery company from San Francisco is offering shares to the public from 19 September 2023. Each share costs between $28 to $30. The total value of this offering is $660 Million, and will start Trading on Nasdaq with the symbol "CART".

Instacart IPO: Business Overview

HeadquartersSan Francisco
Stock ExchangeNasdaq
IPO Launch Date19 September, 2023

 Founded in 2012, Instacart aimed to simplify grocery shopping online. They analyzed customer needs and developed advanced technologies for retailers. Their goal is to help all retailers thrive online and offline. Now, they partner with over 1,400 stores, covering 85% of the U.S. grocery scene. With their support, retailers grow in today's digital world. In 2022, they achieved $29 billion in sales, making them North America's top grocery tech company.

Instacart introduced a unique online grocery shopping method, delivering from familiar stores on demand. They connected retailers to 7.7 million active users who spend about $317 monthly. Customers can shop on Instacart's platform or directly through retailer websites powered by Instacart's comprehensive tech solution, which includes online shopping, store connectivity, ads, and insights.

Instacart IPO: Objective

Instacart has marked the 19th of September 2023 to open its doors to investors on Nasdaq, which is the second IPO in 2023 in the US.
They aim to sell 22 million shares, each priced between $28-$30.
The company has sold 16-29% of shares over the last decade.

Instacart IPO: Financial Performance

ParticularsFY22(in $Billion)FY21(in $Billion)
Total Revenue$2.55$1.83
Profit/Loss After Tax$0.43-$0.07
Current Assets$2.70$2.30
Current Liabilities$0.79$0.59

The Current Assets have increased from $2.3 Billion in financial year 21 to $2.7 Billion in financial year 2022, with an increase of 17.31% indicating overall Asset performance.

In terms of revenue, the Company has experienced significant growth in operating revenue resulting in an increase in Total revenue, rising from $1.83 Billion in FY21 to $2.55 Billion in FY22, with a conspicuous increase of 39.34%. Moreover, Net profits have also seen an increase, going up from -$0.07 Billion in FY21 to $0.43 Billion in FY22, which has increased by 714.28% over the past year.

Instacart IPO: Strengths

  1. Instacart invests heavily in specialized grocery technology, using advanced algorithms to optimize various tasks, and adapts new tech swiftly for grocers, enhancing their online and in-store experiences without competing against them, solidifying their role as a trusted tech partner.
  2. They work closely with grocers covering over 85% of the U.S. grocery market.
  3. Instacart's collaboration with 1,400+ retailers and 900 million orders enhances efficiency, bolstering profits and their robust financial structure.
  4. Instacart's diverse ordering options, from rapid deliveries to next-day, make it a prime partner for brands, meeting all grocery needs and offering varied ad opportunities.
  5. They help stores move online quickly without high costs or stock risks.
    Instacart's ads help brands target customers effectively, using unique data to boost sales both online and in-store.