Instacart takes step toward IPO

After years of industry buzz, Instacart has taken a preliminary step to pursue an initial public offering.

San Francisco-based Instacart said late Wednesday evening that it has filed a confidential S-1 draft registration statement with the Securities and Exchange Commission. The online grocery delivery company said the registration statement is expected to become effective after the SEC completes its review, subject to market conditions and other considerations. SEC Form S-1 is used to register a company’s securities before listing them on a public exchange.

In a press release, Instacart gave no comment on the confidential IPO filing. A Bloomberg report last night said Instacart is working with Goldman Sachs and Morgan Stanley on an IPO, and the company’s public launch could happen this year.

Just over a year ago, in March 2021, Instacart boosted its valuation to $39 billion with the addition of $265 million from a new round of financing. But then, this past March, the company cut its valuation by nearly 40% to $24 billion amid market volatility that triggered a technology stocks selloff.

News surfaced in November 2020 that Instacart was planning an IPO valued at about $30 billion. At the time, Reuters reported that Instacart has enlisted investment bank Goldman Sachs to lead the IPO, which could be launched in 2021.

Related:Instacart’s retail partners now include all of Canada’s biggest grocers

In January 2021, Instacart hired Goldman Sachs veteran Nick Giovanni, a specialist in IPOs and mergers/acquisitions, to succeed Sagar Sanghvi as CFO. And then that February, Facebook executive Asha Sharma started at Instacart as chief operating officer, and Fidji Simo, head of Facebook App, and Barry McCarthy, former CFO for Spotify and Netflix, joined Instacart’s board of directors, bringing more digital business acumen to the company. Simo succeeded Instacart founder Apoorva Mehta as CEO in August 2021.

"As much as we’ve accomplished over our first decade, I’m even more excited for what’s to come." — Fidji Simo, Instacart CEO

Simo yesterday posted a blog marking Instacart’s 10th anniversary. She didn’t mention the IPO filing but discussed where Instacart is headed over its next 10 years.

“Since we launched the Instacart app in 2012, we’ve made online grocery shopping affordable and accessible to families across North America. Over the years, we’ve signed up more than 750 retail banners with more than 70,000 stores, making same-day delivery available to millions of families. Today, we partner with retailers that represent more than 80% of the U.S. grocery industry,” Simo wrote in the blog.

Related:Instacart looks to drive grocers’ digital transformations

She then went on to say that “the grocery industry is ready for its next, tech-enabled chapter” and that “our vision is to build the technologies that can power every single grocery transaction.”

To that end, in March, Instacart unveiled Instacart Platform, a modular, enterprise-grade solutions suite designed to provide end-to-end omnichannel functionality by giving grocery retailers access to the technologies behind Instacart’s consumer marketplace.

Simo concluded in her blog, “As much as we’ve accomplished over our first decade, I’m even more excited for what’s to come: helping retailers and brand partners grow their businesses, building a more connected online and in-store consumer experience, and making grocery shopping less transactional and more inspirational and personal. Cheers to the next 10 years. We’re happy to have you at our table.”

Overall, Instacart partners with more than 750 national, regional and local retailers in North America and provides online shopping, delivery and pickup from more than 70,000 stores in over 5,500 cities. Instacart’s services reach more than 85% of U.S. households and about 90% of Canadian households.