Sep 19, 2023 - Economy

Instacart's down-round IPO

Change in Instacart share price since funding round
Data: PitchBook; Chart: Jared Whalen/Axios

Instacart had a reasonably successful first day of trading Tuesday, rising as high as $42 per share and closing at $33.70, 12% above its $30 IPO price. Many of its investors, however, would have been better off just putting their money in an S&P 500 index fund.

Why it matters: Instacart raised $660 million yesterday at a valuation of $9.9 billion. That's down sharply from its previous round, when it raised $265 million in March 2021 at $125 per share — a valuation of $39 billion.

Between the lines: At Tuesday's closing price, anybody who bought into Instacart in any of the the past three funding rounds is still underwater on their investment.

  • Investors in the monster $897 million Series F round that closed in December 2018 are up on their $29.74 purchase price — but are significantly underperforming the stock market as a whole.
  • You need to go all the way back to the $220 million Series C round in January 2015 to find a group of investors that significantly outperformed the market.

The bottom line: This is far from being the IPO that many of Instacart's venture investors were dreaming of.

Go deeper: The new IPO story is lowered expectations

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