Instacart files plans for initial public offering: Grocery delivery app reveals sales surged 31% in the first half of the year to $1.48B as it sets the stage to end Wall Street's tech IPO drought
- Instacart on Friday revealed plans for an initial public offering in New York
- Filing reveals sales surged 31 percent to $1.48 billion in first half of 2023
- Its shares would be listed on the Nasdaq under the ticker symbol 'CART
Grocery delivery app Instacart has filed plans for a public stock market flotation in New York, setting the stage for one of the most anticipated IPO listings in recent years.
In a regulatory filing on Friday that offered the first detailed look into its finances, Instacart said its revenue had surged 31 percent to $1.48 billion in the six months ended June 30.
Instacart is also already profitable, with net income of $242 million for the first half after a $72 million loss a year ago -- a stark contrast to other tech firms, such as Uber, which prioritized growth and went public before earning a profit.
The company will trade on the Nasdaq under the symbol CART, but the filing did not reveal what valuation range Instacart will be seeking in its public float.
'Grocery is the largest retail category and represents a $1.1 trillion industry in the United States alone. But only 12 percent of grocery sales are made online today,' said Instacart CEO Fidji Simo in the filing, predicting that share could double or more in time.
![Grocery delivery app Instacart has filed plans for a public stock market flotation in New York, setting the stage for one of the most anticipated listings in recent years](https://i.dailymail.co.uk/1s/2023/08/25/19/74734087-12446535-image-a-39_1692989547741.jpg)
Grocery delivery app Instacart has filed plans for a public stock market flotation in New York, setting the stage for one of the most anticipated listings in recent years
![Instacart CEO Fidji Simo is seen above. The company will trade on the Nasdaq under the symbol CART](https://i.dailymail.co.uk/1s/2023/08/25/20/74735419-12446535-image-a-48_1692992827442.jpg)
Instacart CEO Fidji Simo is seen above. The company will trade on the Nasdaq under the symbol CART
The development comes 15 months after Instacart submitted its IPO paperwork confidentially, a move that is typically a precursor to an imminent listing.
The San Francisco-based company had earlier aimed to list in the fourth quarter of last year, but deferred its plans as a sell-off in technology stocks and the U.S. Federal Reserve's relentless rate hikes led to a rout in equities.
Initial public offerings by Instacart and SoftBank Group-backed chip designer Arm are expected to revitalize the US IPO market.
The appetite for public floats has already seen some green shoots this year after a drought in 2022, on bets that the Fed could guide the economy to a so-called 'soft landing.'
Excluding special purpose acquisition companies (SPACs), $10.3 billion has been raised via 77 IPOs so far this year, nearly double the amount in the same period in 2022, according to data from Dealogic.
![An Instacart delivery driver loads cases of bottled water for a customer's order ahead of Hurricane Hilary earlier this month. Instacart said its revenue had surged 31 percent to $1.48 billion in the six months ended June 30](https://i.dailymail.co.uk/1s/2023/08/25/21/74735421-12446535-image-a-56_1692995310551.jpg)
An Instacart delivery driver loads cases of bottled water for a customer's order ahead of Hurricane Hilary earlier this month. Instacart said its revenue had surged 31 percent to $1.48 billion in the six months ended June 30
SoftBank Group's chip designer Arm is also expected to list its shares in New York soon.
But the fact that the company is churning a profit could also help it find favor among picky IPO investors, who have since last year have been preferring profitable firms over ambitious but loss-making startups.
Goldman Sachs and J.P.Morgan are the lead underwriters for the offering, Instacart said, adding that its shares would be listed on the Nasdaq under the symbol 'CART.'
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