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Instacart, the popular grocery delivery service and a standout success of the pandemic era, has recently announced its debut on Nasdaq.

Trading under the ticker “CART,” here’s what you need to know:

  • Challenges: Previously, Instacart held a valuation of $39B, with support from power players like Sequoia Capital, Andreessen Horowitz, and T. Rowe Price. The market, however, wasn’t prepared to accept such a lofty valuation, leading the company to lower its stock price to attract public investors.
  • Pricing and Earnings: Instacart’s IPO was priced at the top end of its $28-$30 range, raising a total of $660M. Of this, $237M will return to investors who sold their shares in the offering.
  • Valuation: The IPO gives Instacart a valuation of nearly $9.9B, a stark decrease from its $39B worth in 2021 during the last funding round.
  • Founder Share Sales: Co-founders Brandon Leonardo and Maxwell Mullen each offloaded 1.5 million shares. Meanwhile, Mehta, another co-founder, sold a smaller tranche of 700,000 shares.
  • Other developments: Co-founder Apoorva Mehta is stepping down from the board. Fidji Simo, a former Facebook executive, is set to replace him.
  • Outlook: The company’s shares ended at $33.70 after reaching a high of $42.95. Goldman Sachs and J.P. Morgan are the lead underwriters for Instacart’s IPO.

Even with all this, Instacart managed a 12% leap on its first day on Nasdaq. Despite losing some of its initial gains, the final figures reveal a healthy fundraise.

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