Instacart, which operates a grocery delivery platform, filed on Friday with the SEC to raise up to $100 million in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise up to $1 billion. Insiders plan to sell a portion of the offering. PepsiCo has agreed to purchase $175 million of redeemable convertible preferred stock in a concurrent private placement.
Instacart offers consumers on-demand delivery or pickup across a variety of use cases including the weekly shop, bulk stock-up, convenience, and special occasions at the speed that best serves their needs. The company's retail partners reach 7.7 million monthly active orderers who spend approximately $317 per month on average on Instacart. Retailers reach customers through both the Instacart Marketplace and the Instacart Enterprise Platform, which allows retailers to use Instacart's technology to power their own websites, apps, and retail operations. Additionally, 5,500 consumer packaged brands utilize Instacart Ads to become more easily discoverable to customers.
The San Francisco, CA-based company was founded in 2012 and booked $2.9 billion in revenue for the 12 months ended June 30, 2023. It plans to list on the Nasdaq under the symbol CART. Instacart filed confidentially on May 11, 2022. Goldman Sachs, J.P. Morgan, BofA Securities, Barclays, and Citi are the joint bookrunners on the deal. No pricing terms were disclosed.
