Leidi.com Lei Jianping September 19
Instacart (stock code: "CART"), a North American online fresh grocery delivery company, was listed on the Nasdaq in the United States today.
Instacart’s initial issuance range was US$26 to US$28, with a valuation range of US$8.6 billion to US$9.3 billion. After SoftBank's Arm went public and raised nearly US$5 billion, rising 25% on the first day, Instacart raised its issuance range to US$28 to US$30.
Instacart’s issuance price is US$30, which is the highest end of the raised issuance range. After full dilution, Instacart has a market capitalization of $10.2 billion.
Instacart issued a total of 22 million shares, raising $660 million. Among them, Instacart sold 14.1 million shares, raising US$423 million; existing shareholders sold 7.9 million shares, cashing out US$237 million.
PepsiCo purchased $175 million worth of Series A redeemable convertible preferred stock through a private placement.
In addition, Norges Bank Investment Management and entities affiliated with TCV, Sequoia Capital, D1 Capital Partners, LP and Valiant Capital Management (collectively, cornerstone investors) purchased approximately $400 million of common stock.
Annual revenue of US$2.55 billion
Instacart was founded in 2012 by Apoorva Mehta, a former engineer at the retail giant Amazon who was born in India. It is headquartered in San Francisco and is a North American online fresh grocery delivery company. Instacart lists Amazon, Target, Walmart and DoorDash as its competitors.
The epidemic has promoted the development of Instacart. At that time, the home quarantine order restricted people's activities, the demand for fresh food department stores and daily necessities increased, the demand for online shopping and offline delivery surged, and the number of Insatcart users increased significantly.
The prospectus shows that Instacart's revenue in 2020, 2021 and 2022 will be US$1.477 billion, US$1.834 billion, and US$2.551 billion respectively; gross profits will be US$879 million, US$1.226 billion, and US$1.831 billion respectively.
Instacart's operating profits in 2020, 2021, and 2022 are -USD 75 million, -USD 86 million, and USD 62 million respectively; net profits are -USD 70 million, -USD 73 million, and USD 428 million respectively.
Instacart's revenue in the first half of 2023 was US$1.475 billion, compared with US$1.126 billion in the same period last year; gross profit was US$1.109 billion, compared with US$769 million in the same period last year; operating profit was US$269 million, compared with US$769 million in the same period last year The operating loss was US$73 million; net profit was US$242 million, compared with a net loss of US$74 million in the same period last year.
Instacart’s R&D expenses in the first half of 2023 were US$257 million, sales and marketing expenses were US$327 million, and administrative expenses were US$128 million.
Valuations have been slashed
In 2018, Instacart announced that it had received US$600 million in financing led by D1 Capital Partners, with a valuation of US$7.6 billion.
In 2020, Instacart received financing three times in a row, including US$225 million in financing in June 2020, with a valuation reaching US$13.7 billion;
In October 2020, Instacart received US$200 million in financing, with a valuation reaching US$17.7 billion, led by existing investors D1 Capital and Valiant Peregrine Fund.
In March 2021, Instacart announced the completion of a new round of financing of US$265 million, with a valuation of US$39 billion, from existing venture capital investors such as Andreessen Horowitz, Sequoia Capital and D1 Capital Partners, as well as Fidelity and T. Rowe Price. Existing institutional investors led the investment.
To date, Instacart has raised more than $2.6 billion.
A few years ago, Instacart considered a "direct listing." Even investment bankers responsible for Instacart’s listing predict that the market’s valuation of Instacart may exceed $50 billion.
But in 2022, Instacart's valuation will suffer a sharp decline. Instacart cut its valuation by nearly 40% to $24 billion in March 2022 and again to $15 billion in July. By the second half of 2022, Instacart had cut its valuation to about $13 billion.
But Instacart’s IPO in the second half of 2022 has not taken place. Instacart executives emphasized that the company's business fundamentals are healthy and are waiting for an optimal public market window.
Although Instacart has been raised this time to a valuation of tens of billions of dollars, it is still significantly lower than its valuation at its peak.
Sequoia and D1 Capital are important shareholders
Before the IPO, Sequoia Capital held 19%, D1 Capital held 14%, Apoorva Mehta held 11%, and Brandon Leonardo and Maxwell Mullen held 3% each.
Existing shareholders Brandon Leonardo, Maxwell Mullen, Former Executive Officers, Former Senior Product Employees, Former Senior Engineering Employees, Other Former Employees, etc. cashed out large sums.
After the IPO, Sequoia Capital holds 18%, D1 Capital holds 13%, Apoorva Mehta holds 10%, and Brandon Leonardo and Maxwell Mullen hold 2% each.
The following is the Instacart roadshow PPT (edited by Leidi.com):
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