Instacart IPO Raises $660 Million at $10 Billion Valuation

Instacart (trading as Maplebear Inc.) went public on the Nasdaq at $30 per share, raising $660 million in the first major tech IPO of 2023, though at a dramatic discount from its pandemic-era $39 billion private valuation.

Instacart (Maplebear)

September 2023

San Francisco, CA

$660 million (IPO)

What Drove This Round?

IPO market had been frozen for nearly two years, and Instacart wanted to provide employee liquidity

The company achieved profitability through its high-margin advertising business (Instacart Ads)

Grocery delivery market normalized post-pandemic, but Instacart maintained over 70% market share

PepsiCo executive Fidji Simo led a successful pivot from growth-at-all-costs to profitable operations

Impact Analysis

The IPO tested the waters for other tech companies waiting to go public and was followed by Arm Holdings and Klaviyo listings. While the valuation markdown from $39B to $10B was stark, it reflected the broader reset in delivery-company valuations. Instacart's advertising business -- not delivery fees -- emerged as the primary value driver, processing over $1.5 billion in advertiser spend annually.

Source: ReutersView original

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