Instacart and Klaviyo Break Tech IPO Drought with Public Filing Plans
Grocery delivery giant Instacart and marketing automation firm Klaviyo officially file for IPOs, signaling a potential rebound in the tech public markets after a two-year dry spell.
Instacart and Klaviyo officially break the nearly two-year drought for major tech IPOs by filing their public market plans on Friday. These highly anticipated filings follow Arm Holdings' Monday announcement and give venture capitalists hope that the startup IPO window is finally reopening. With nearly $900 billion tied up in billion-dollar startups, investors watch closely to see how the market receives these two venture-backed bellwethers.
Instacart highlights a rocky yet resilient path for late-stage startups as it prepares to list on the Nasdaq under the ticker CART. The decade-old grocery delivery company shows $1.48 billion in revenue for the first half of 2023 and reports profitability for five straight quarters. Despite dropping its internal valuation from a 2021 peak of $39 billion to around $13 billion, Instacart boasts major backing from top firms like Sequoia Capital, Andreessen Horowitz, and Tiger Global Management.
Boston-based Klaviyo also presents a strong financial picture as it heads toward its own public debut. The marketing and data automation startup reports a 51% revenue increase in its most recent quarter and confirms it is currently profitable. Having raised close to $780 million from venture investors and holding a recent valuation of about $10 billion, Klaviyo aims to raise at least $750 million in its upcoming offering.