Instacart sets sights $9.3B IPO valuation

Grocery delivery app, Instacart, is reportedly eyeing a valuation between $8.6B to $9.3B for its impending IPO, according to an anonymous source.

• Drop in Valuation: This targeted IPO valuation signifies a significant drop from the company's estimate of $39B in 2021. The previous valuation came amidst the COVID-19 pandemic, which catalyzed an explosion in demand for doorstep delivery services.

• Consideration of Direct Listing: Instacart had previously contemplated a direct listing, a process where no shares are sold in advance and current investors can sell their shares directly to the public, sources revealed to Reuters.

• Instacart's Financial Performance: Instacart's revenue for the first half of this year was reported at $1.48B, marking a 31% increase from the same period in the previous year. Its advertising and other revenue also saw a 24% boost to reach $406B. In contrast to a $74M loss the previous year, the company reported a net income of $242M for the six months ending in June.

• Joining the IPO Wave: Expected to list its shares in September, Instacart follows in the footsteps of other high-profile companies such as SoftBank's Arm Holdings Ltd and marketing automation enterprise Klaviyo.

As yet, Instacart has declined to comment on these details. More information is expected to be released with the company's updated regulatory filing.