Instacart Shares Jump 43% in IPO Before Settling at 12% Gain, Valuing Grocery Delivery Firm at $11B

Shares in Instacart jumped 43% in its Nasdaq debut on Tuesday before dropping back to close up 12%
Valued the grocery delivery company at about $11 billion, half its valuation last year
Core business is sending couriers to pick up grocery orders and deliver to homes
Recently expanded into advertising, AI, and other tech services
Pitched IPO as chance to capitalize on growth in online grocery ordering
Backed by investors like PepsiCo, Norges Bank, and Sequoia Capital
Founder Apoorva Mehta's 10% stake now valued at $1.3 billion after IPO

theguardian.com

Relevant topic timeline:

8/25/2023

Instacart files to go public on Nasdaq to try and unfreeze tech IPO market

Instacart, the grocery delivery company, has filed for an IPO, reporting profitable quarters and revenue of $716 million, with plans to create an omnichannel experience merging online and in-store shopping.

9/10/2023

Instacart Plans Lower Valuation IPO, First Major Tech Listing Since 2021

Instacart is aiming to go public at a valuation between $8.6 billion and $9.3 billion, marking a significant change from its previous valuation, as it looks to reignite the IPO market.

9/20/2023

Instacart Shares Drop as IPO Excitement Fades Amid Economic Concerns and Changing Consumer Habits

Instacart shares fall 5% as the grocery delivery app struggles to maintain strong gains on debut amid concerns of inflation and higher interest rates.

9/21/2023

Instacart Shares Drop Below IPO Price as Investors Remain Cautious of New Issues

Shares of Instacart, the grocery delivery company, fell below its IPO price, experiencing a choppy reception in the market amid skittishness and potential government shutdown concerns.