Instacart's slimmed-down IPO valuation

PepsiCo to purchase $175 million of new series of Instacart's preferred stock

Instacart is targeting a smaller version of itself when it goes public, valued at a sliver of what it was during the height of the pandemic.

The online grocer's valuation is expected to be in the $8 billion range, a far cry from the $30+ billion it was valued at in 2021, as reported by Reuters.

The company plans to offer 14,100,000 shares of common stock and an additional 7,900,000 shares, which will trade under the ticker CART. Those are expected to price between $26 to $28, and the company aims to raise about $616 million, according to the SEC filing.

Instacart is entering a crowded field with big rivals that include Amazon and Walmart.

Ticker Security Last Change Change %
AMZN AMAZON.COM INC. 183.66 -0.17 -0.09%
WMT WALMART INC. 67.02 +0.32 +0.48%

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Laptop open to Instacart.

Instacart is targeting a smaller version of itself when it goes public, valued at a sliver of what it was during the height of the pandemic. (Tiffany Hagler-Geard / Bloomberg / File / Getty Images)

Instacart controls about 22% of the $132 billion U.S. online grocery-delivery market, according to Evercore.

Grocery, shoppers, Instacart

Instacart controls about 22% of the $132 billion U.S. online grocery-delivery market, according to Evercore. (Joe Raedle / File / Getty Images)

The company said it had 5.1 million users as of June 2023, up from 4.6 million in the year-ago period. 

The deal, along with Arm Holdings expected this week, will help revive IPOs that have slowed due to inflation and the Federal Reserve’s 11 interest hikes since 2021. There were 181 deals in 2022, down from 1,035 in 2021, as tracked by Stock Analysis.

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Ticker Security Last Change Change %
PEP PEPSICO INC. 163.81 +0.48 +0.29%

Additionally, PepsiCo agreed to purchase $175 million of Series A redeemable convertible preferred stock, or the Series A Preferred Stock, in a private placement.

Pepsi Co

Customers fill cups with PepsiCo brand beverages at the food court of a Costco store in San Antonio. (Callaghan O'Hare / Bloomberg / File / Getty Images)

Due to SEC guidelines, Instacart could not provide comment to FOX Business at this time.

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