Grocery Delivery Giant Instacart Goes Public in Long-Awaited Nasdaq Debut
Instacart begins trading on the Nasdaq, seeing an initial pop before settling to an $11 billion valuation. The grocery delivery company prioritizes profitability over rapid growth in the first major venture-backed IPO since 2021.
Instacart shares rise 12% in their Nasdaq debut as the grocery delivery company finally goes public after a long wait. The stock opens at $42, representing a 40% jump from its initial $30 offering price, before closing the day at $33.70. This successful launch values the company at just over $11 billion on a fully diluted basis.
The company marks the first notable venture-backed tech IPO in the U.S. since December 2021, providing a closely watched test for investor appetite. Instacart trades at a significant discount to its $39 billion private market valuation from early 2021. To attract public market investors, the company shifts its focus away from explosive growth and toward sustainable profitability.
Instacart currently generates solid earnings, reporting $114 million in net income for the latest quarter. Revenue grows 15% to reach $716 million, a much slower pace than the massive surges seen during the height of the pandemic. The stock now trades at roughly 3.9 times annual revenue, putting its valuation slightly below competitor DoorDash despite Instacart's profitable status.