Instacart closed up 12.33% in its Nasdaq debut, valuing the grocery delivery company at just over $11B; Instacart was valued at $39B in March 2021

CNBC 2023-09-20 Ari Levy

Context & Ripple Effects

Instacart’s public-market valuation follows a sharp reset from its 2021 private funding peak: the company raised capital at a $39B valuation before voluntarily marking itself down to about $24B in 2022 and later reportedly cutting its internal valuation again.

The debut also came after Instacart filed for an IPO targeting up to $616M and then priced 22 million shares at $30. The first-day gain establishes a public reference point just above $11B rather than restoring the earlier private-market level.

First-order effects

Instacart gains a publicly traded valuation and a 12.33% first-day price increase, giving shareholders an immediate market benchmark at just over $11B.
The close validates the IPO pricing above the indicated $26–$28 range, while still leaving the company valued far below its 2021 private-round peak.

Second-order effects

The gap between the debut valuation and the $39B private mark makes the reset in late-stage grocery-delivery valuations concrete for employees, investors, and prospective IPO issuers.
A positive first session may improve the reception for comparable listings, but the valuation outcome reinforces that public buyers can apply materially different pricing from private funding rounds.

Third-order effects

If subsequent listings show the same pattern, IPOs will increasingly serve as the clearing mechanism for private-company valuations set during the earlier funding cycle.
The episode points toward a market in which late-stage companies must align internal valuations and employee equity expectations more closely with public-market comparables before listing.

The trend: The listing is one data point in the repricing of pandemic-era private technology valuations through public-market discovery.

Discussion

@apoorva_mehta Apoorva Mehta on x
Today, the company I founded in my kitchen is now publicly traded ($CART)! I'm immensely grateful to the team that built @instacart. I also want to thank the hard-working community of shoppers, our incredible customers, our retail and CPG partners and our CEO @fidjissimo
@coryweinberg Cory Weinberg on x
It's been: 🗓️ 4,100 days since Apoorva Mehta founded Instacart 🗓️ 1,287 days since the pandemic started 🗓️810 days since it tried to sell to DoorDash 🗓️496 days since it confidentially filed for an IPO But, at long last, our national nightmare is over: Instacart is public. [image…
@apoorva_mehta Apoorva Mehta on x
While this is an important milestone, the work @instacart is only just beginning. I can't wait to see how the team continues to transform the grocery industry. Onward!
@aswathdamodaran Aswath Damodaran on x
Is risk capital finally coming off the sidelines? ARM popped on its IPO last week, and Instacart opened at $42 (offer price of $30) today. My Instacart valuation came out just as the stock got listed, putting the value at about $29/share.https://aswathdamodaran.blogs pot.com/ ...
@jonerlichman Jon Erlichman on x
Apoorvah Mehta graduated from the University of Waterloo 15 years ago. He worked for BlackBerry and Qualcomm. Then Amazon. But he wanted to build a business. Over 2 years, he worked on 20 ideas. Nothing stuck. Then, he started Instacart. At 33, he became a billionaire. [image]
@bgurley Bill Gurley on x
When I see examples of “peer respect” I literally get goosebumps. Nothing signals excellence as much as someone that clearly knows what that means in a given field taking the time to appreciate another. Super-kind. As another example, check this out - https://faroutmagazine.co.uk…
@jamestamplin James Tamplin on x
Some fun @Instacart context on their IPO day (Congrats to the whole team!) @apoorva_mehta and I shared an office back in 2012. (@somacentral where Instagram, Twilio, AngelList, GetAround, and several other now-famous companies were at 153 Townsend). 1/n
@taliagold Talia Goldberg on x
On April 9th 2014, I co-drafted Bessemer's anti-portfolio submission for @Instacart. That was prescient and stupid! Congrats to the entire Instacart team! [image]
@garrytan @garrytan on x
In 2012 this was what I wrote to the partners when I got that six pack of beer from Instacart— This is a glimpse at what the YC partners do behind the scenes. We are literally just trying to figure out if you are good at building things people want! That's it. [image]
@apoorva_mehta Apoorva Mehta on x
Finally, none of this would have been possible had my parents not made countless sacrifices as we immigrated from India to Libya and then to Canada - all so that one day my brother and I might have a chance to pursue our dreams.
@instacart @instacart on x
👋 We're in stock. $CART is now listed on the @NasdaqExchange. We're excited for what's next and - most importantly - to bring more food and joy to your $CART! Learn more about our public debut here: https://instacart.com/... [image]
@ycombinator @ycombinator on x
Congrats @apoorva_mehta, @max, and @shiftb on the @Instacart IPO! What started in 2012 with a beer delivery to @garrytan has transformed how we all shop today. [image]
@apoorva_mehta Apoorva Mehta on x
My empty refrigerator was an ongoing problem - and a source of inspiration. It was 2012 and I could shop for everything online except groceries. That was a lightbulb moment for me, and I got started coding the first version of the Instacart App.
@lesliepicker Leslie Picker on x
Wow, Instacart closed 19.8% below its opening print of $42. Still 12% above the IPO price of $30 per share, but still...flippers be flipping. $CART
@apoorva_mehta Apoorva Mehta on x
More than a decade ago, I was sitting in my apartment in San Francisco bemoaning the fact that the only thing I had in my refrigerator was hot sauce. Don't get me wrong, I love hot sauce, but you can't exactly make it a meal.
@aswathdamodaran Aswath Damodaran on x
Instacart was listed today, and the stock price jumped to $42 on the listing. Before you classify this as a VC win, here is list of all of the VC rounds in Instacart. Every VC investment since 2015 has lagged the S&P 500. https://aswathdamodaran.blogspot.com/ ... [image]
@modestproposal1 @modestproposal1 on x
“When Instacart starts trading on the Nasdaq on Tuesday, investors won't be betting on a grocery-delivery company. They'll be betting on a data and advertising business.” https://www.bloomberg.com/...
@jason @jason on x
Late-stage investing can be amazing, quick money.... or you can get your ass handed to you as we see here in the later stages of the Instacart IPO $cart Congrats to founders and early investors: @ycombinator, @vkhosla (GOAT!), Sequoia and @pmarca! [image]
@nasdaqexchange @nasdaqexchange on x
@NasdaqExchange is excited to celebrate with the @instacart team as they ring in their next chapter! 🛎🥕 [video]
@davehclark Dave Clark on x
Congrats @apoorva_mehta @fidjissimo and the whole Instacart team...as an observer from afar for a long time it's super impressive what you built. Many won't ever appreciate the complexity you had to overcome in grocery they will just enjoy the magic which is what makes it great!.…
@luke_metro @luke_metro on x
The VCs are posting self congratulatory tweets again [image]
@davehclark Dave Clark on x
Congrats @apoorva_mehta and the whole Instacart team...as an observer from afar for a long time it's super impressive what you built. Many won't ever appreciate the complexity you had to overcome in grocery they will just enjoy the magic which is what makes it great! But from an.…
@tobi Tobi Lutke on x
Congratulations to the legendary @fidjissimo! The queen of commerce has now ascended to the boards of $SHOP and $CART
@levie Aaron Levie on x
Instacart is an amazing startup story of defying all the odds. Retail and grocery delivery on-demand has failed countless times since the beginning of the web. Instacart pulled it off with a ton of ingenuity on product strategy, masterful operational execution, and pure grit.
@rolfewinkler Rolfe Winkler on x
Price per share investors paid for Instacart (IPO $30, trading at $39) A: $0.24, @sequoia/@moritzKBE B: $2.91, @a16z/@jeff_jordan C: $13.31, @kleinerperkins/@MMeekerW (Series G thru I priced between $48 to $125 per share and included large follow-ons from Seq/A16Z).
@garrytan @garrytan on x
In 2012, Instacart founder Apoorva Mehta hacked his way into YC by sending me a six pack of beer. It was a cold and refreshing pack of 21st Amendment's Back in Black. The hack wasn't the thing that mattered— what did? Apoorva had already built something amazing. [image]
@garrytan @garrytan on x
I'm so proud of @apoorva_mehta @max and new CEO @fidjissimo and YC and Initialized were both incredibly lucky to be a part of this incredible 11 year overnight success. Congratulations to the team for making something people truly want.
@alexia Alexia Bonatsos on x
Congratulations to everyone involved in the Instacart IPO. I'm a happy customer, respect the product (they tell you when you're getting in-store pricing!) and the operators that help keep it afloat during the toughest of markets. A decade-long effort, enjoy the win today.
@levie Aaron Levie on x
Huge congrats @apoorva_mehta, @max, @fidjissimo, and the rest of the team. What an incredible ride, and incredible work transforming commerce forever! [image]
@jesslivingston Jessica Livingston on x
Congrats! Our 11 yo was a newborn in 2012 and if you asked me back then what YC startup I couldn't live without, it was InstaCart! Make something people want.
@jeff_jordan Jeff Jordan on x
Congratulations to @apoorva_mehta, @fidjissimo and the entire @Instacart team on becoming a public company! We @a16z have been privileged to be along for the ride. Reflections from our initial investment back in 2014: https://a16z.com/...
@fidjissimo Fidji Simo on x
None of this would have been possible without the early days determination and grit of our founders - @apoorva_mehta, @Max and @shiftb. Thank you for the creative spark that founded Instacart and for entrusting me to lead the company's next chapter.
@fidjissimo Fidji Simo on x
So excited to be taking Instacart public today! The last two years have been a wild ride, but I'm really proud of the business this team has built, turning us into an enduring and profitable company that delivers a critical service to millions of people. [image]
@altcap Brad Gerstner on x
Congrats to everybody involved @Instacart - happy to be in the IPO. Hope IPO clears way for other 1000 unicorns to find their market clearing price. “Down-round IPO” is silly phrase. Price of entry matters. Multiples at 10 yr averages- price today is the New Normal. Time to IPO. …
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Instacart shares start trading on Nasdaq at $42

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