Instacart Files for IPO. What Happens Next.

In its prospectus, the company said it had sales of $1.475 billion during the first six months of 2023, up from $1.126 billion during the same period in 2022, while producing net income of 27 cents a diluted share, up from a loss of $1.03.

Instacart, which was founded in 2012, lets independent contractors browse through orders and pick a shopper whose order they would like to fulfill. It became more prominent as Americans avoided visiting stores during the Covid-19 lockdowns.

In May last year, Instacart had said it filed confidential paperwork for a public offering, but plans were postponed due to market conditions, a person familiar with the matter said at the time The company’s estimated valuation has been adjusted multiple times since then.

Instacart’s announcement of an IPO raises expectations that other tech-related companies might do the same. Fintech company Stripe and graphic design platform Canva are other tech companies that investors consider candidates for IPOs.

In the coming weeks, investors will likely see Instacart launch a roadshow, or series of meetings with potential investors, which can lasts up to four weeks and is essential to evaluate the demand for the shares. The price for the stock is typically set the night before the exchange listing based on the level of interest.

Write to Karishma Vanjani at [email protected].