Instacart, which operates a grocery delivery platform, announced terms for its IPO on Monday.
The San Francisco, CA-based company plans to raise $594 million by offering 22 million shares (36% secondary) at a price range of $26 to $28. Cornerstone investors intend to purchase $400 million worth of shares in the offering (67% of the deal), and PepsiCo has agreed to purchase $175 million worth of redeemable convertible preferred stock in a concurrent private placement. At the midpoint of the proposed range, Instacart would command a fully diluted market value of $8.9 billion.
The company expects up to 1% of shares sold in the IPO will be offered to retail investors through SoFi and Robinhood.
Instacart offers consumers on-demand delivery or pickup across a variety of use cases including the weekly shop, bulk stock-up, convenience, and special occasions at the speed that best serves their needs. The company's retail partners reach 7.7 million monthly active orderers who spend approximately $317 per month on average on Instacart. Retailers reach customers through both the Instacart Marketplace and the Instacart Enterprise Platform, which allows retailers to use Instacart's technology to power their own websites, apps, and retail operations. Additionally, 5,500 consumer packaged brands utilize Instacart Ads to become more easily discoverable to customers.
Instacart (Maplebear) was founded in 2012 and booked $2.9 billion in revenue for the 12 months ended June 30, 2023. It plans to list on the Nasdaq under the symbol CART. Goldman Sachs, J.P. Morgan, BofA Securities, Barclays, and Citi are the joint bookrunners on the deal. It is expected to price during the week of September 18, 2023.
