To go public, Instacart reveals itself: Siècle Digital

After Arm, Instacart prepares its IPO. The food delivery giant filed a dossier with the Securities and Exchange Commission (SEC), the federal regulator of US financial markets, on August 25. Inside, Instacart reveals a lot of financial information in view of its entry on the Nasdaq in New York.

First look at Instacart finances

While no details of future Instacart stock have been disclosed, the San Francisco-based company reveals it has struck deals with several investors. These include Sequoia Capital, D1 Capital Partners, Valiant Capital, Norges Bank and TCV. It also announces a private equity placement with the PepsiCo Group worth $175 million.

In documents shared with the SEC, the company details its latest financial results, which it kept private until then. In 2022, its revenues were $2.5 billion, a 39% increase over 2021. Year-over-year, it went from $73 million in net losses to $428 million in net income. Over the course of a year, the number of orders increased by 18%.

Persuade by being transparent

With the end of the Covid-19 crisis and a return to normal consumption habits, Instacart has seen its valuation melt. Although it reached $39 billion in 2021, the company was forced to adjust it to $24 and then $10 billion due to the slowdown in the industry. Despite these difficulties, as of the close of its last quarterly financial statements in June, Instacart reported a profit of $114 million, marking the fifth consecutive profitable quarter. One way to make potential investors understand that the group still has something under the pedal.

Aware of the current market difficulties, Instacart assures “ have confidence in the strength of our business, but we are not immune from the industry turmoil that has hit major technology companies, both public and private “. Listing the main risk factors, he specifies that he has” limited experience in managing our business at its current scale, scope and complexity in a post-pandemic market.

To measure the temperature

In line with Arm’s impending listing on the Nasdaq, the introduction of Instacart will allow tech startups to test the waters. Asked by New York TimesBrianne Lynch, head of market research at the company EquityZen, indicates that around 1,400 unicorns, these private companies valued at more than a billion dollars, are waiting for a more favorable trend to launch on the stock exchange. In the US, only 100 companies with valuations over $50 million went public in 2022 compared to 397 in 2021. Along with Arm, Instacart could lead the way.