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Is Instacart a Public Company?

Is Instacart a Public Company?

Is Instacart a public company? No, it is not. Shocking right!! It seems to be making news everywhere and competing successfully with well established brands.

What is Instacart’s status?

  • Instacart is a highly profitable private company located in USA. Their headquarters is in San Francisco, California.
  • It works tremendously well in supply of grocery items from shops to customers who places orders online.
  • The company was started in 2012 to deliver to people their requirements from nearby shops. Other service offered is pick–up from departmental shops. After the order is accomplished, the customer can come quickly to receive his product and drive back in no time.

Who runs Instacart?

  • Apoorva Mehta, an Indian is the founder of this company including Max Mullen and Brandon Leonardo.
  • Some of the main shareholders at present are Andresseen Horowitz, T.Rowe Price, Khosla Ventures, Tiger Global Management, Coatue Management, Sequoia Capital, Kleiner Perkins.
  • Right now it deals with customers of approximately 50000 cities of States.

Is Instacart aiming to becoming a public company in near future?

  • Yes, the organization is desiring to become public in coming years.
  • The company is growing phenomenally and is at it’s peak. So, plans are in the pipeline to file IPO under American SEC guidelines and it may become public very soon.
  • Instacart  is a start-up company that jumped to the top in home delivery of grocery goods. So it is becoming necessary for it to avail the benefits of public equity shares. By selling shares to public it can raise huge capital for development of the comapny.

When does Instacart plan to file for IPO?

  • Though there is no definite date set for filling the IPO, Instacart has certainly set plans in motion.
  • It has chosen to Goldman Sachs to lead its IPO. Also, since the tentative move to apply for IPO, the company’s valuation has more than doubled to $39 billion in less than 6 months.
  • Recently however, there are news that Instacart may delay filing the IPO till late 2021. This is because they want to establish that it is not only because of the pandemic that they are growing at such a accelerated pace. The delay is to reassure its future potential investors.

Is it true that Instacart may not file an IPO?

  • Instacart will still be going public, but it may file a Direct Listing instead of filling an IPO.
  • The difference is that in a direct listing, the company does not create any new shares and sells the existing shares on the market. It thus generates no additional revenues.
  • Whereas, in an IPO additional shares are created and so is additional income but the company also has to undertake additional paperwork and other procedural requirements.

Conclusion

Well, it is a only a matter of time before Instacart turns public. Now the real question is Will it be a company worth investing in once it turns public?

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