Instacart files IPO

After taking a cautious approach this past year, Instacart has filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering of its common stock.

The number of offered shares and a price range for the proposed offering has not been determined yet. Instacart will be listed as “CART” on the Nasdaq Global Select Market.

The lead book-running managers for the proposed offering are Goldman Sachs & Co. LLC and J.P. Morgan. Additional book-running managers will be BofA Securities, Barclays, and Citigroup.

Instacart noted in its prospectus that the company’s net income was $114 million and revenue in the last quarter was $716 million — a 15% increase year-over-year — reports CNBC.

Instacart has been profitable for the last five quarters, and PepsiCo has already agreed to purchase $175 million in the grocery deliverer’s stock in a private placement.
Instacart declined to comment on its IPO filing at  time of publication for this story.

Tech IPOs have been hard to come by over the last couple of years, according to CNBC. Software vendor HashiCorp and cloud technology developer Samsra were the last two to do it back in December 2021. Instacart’s top competitor, DoorDash, filed in 2020, but Instacart is one of the first independent grocery delivery companies to go public.

Related:Instacart introduces custom digital ordering for grocery retailers

Word of Instacart’s long-awaited filing for an IPO began to spread last week. The company filed to go public with the SEC confidentially last year but backed off due to a volatile market. Instacart then cut its internal valuation to $13 billion.

General and administrative expenses were lowered, CNBC reported. Last quarter general and administrative expenses were $51 million compared to $77 million a year prior and $102 million in late 2021.

Instacart also dropped its minimum order base pay rates for shoppers from $7 to $4.

The company, however, has stayed ahead of the curve in terms of technology. The AI-powered search tool “Ask Instacart” was rolled out in May and new capabilities for its enterprise ecommerce solutions were announced a couple of weeks ago.