Instacart has moved another step closer to an IPO, filing an S-1 form with the Securities and Exchange Commission (SEC) but not providing information on how many shares the company plans to sell or at what price. Instacart had confidentially filed for an IPO in May 2022 but had not pursued it further until now.
Instacart’s latest internal valuation, in April 2023, was $12 billion, according to Forbes. Klaviyo was last valued at $9.5 billion following a May 2021 capital raise. Marketplace giant Shopify and Klaviyo entered a product partnership in August 2022 at the same time that Shopify made a strategic investment in Klaviyo. As part of the deal Klaviyo gained early access to Shopify development features, strengthening the two companies’ long-term relationship.
The Instacart filing revealed that the company is now turning a profit: in 2022, Instacart generated $1.83 million in profits, or 6.4% of its GTV (gross transaction value); for Q2 2023, profits equaled 7.1% of GTV. Instacart also boasts an average order value of $110. Additionally, Instacart has attracted a large corporate investor, PepsiCo, which plans to purchase $175 million of its preferred shares after the IPO takes place.
In recent months Instacart has been expanding its business in multiple areas, including:
- Launching Instacart Business, a B2B service aimed at SMBs that will connect business owners with retailers representing 1,100 national, regional and local retail banners with a combined 80,000 stores across more than 14,000 cities in the U.S. and Canada;
- Partnering with Roku to bring together viewing data and purchasing insights to determine whether “streamers” are buying products on Instacart after seeing ads;
- Adding same-day delivery from nearly 1,500 PetSmart stores nationwide; and
- Working with Aldi to create a virtual c-store by offering deliveries for nearly 2,000 popular SKUs in as fast as 30 minutes.