NEW YORK, Sept 11 — US grocery delivery startup Instacart is seeking a valuation of under US$10 billion as it goes public later this month, theThe company is to start pitching its initial public offering to investors at the lower valuation as early as Monday, “in the latest sign of diminished investor enthusiasm” for tech IPOs, the financial daily reported, citing sources close to the matter.
Shares trading under the symbol “CART” are expected to debut on the tech-rich Nasdaq the following week. The valuation — which the company is targeting at US$8.6 to US$9.2 billion — could change between now and then as the company receives investor feedback, the Journal reported. Founded in 2012, the venture capital backed startup saw its business soar early in the coronavirus pandemic as people avoided grocery stores due to the risks from Covid-19.In recent years Instacart has put a focus on orders being ready for pickup at grocery stores instead of being dropped off at customers’ doors.The tech industry at-large is weathering challenging economic conditions that have prompted layoffs and other cost-cutting measures.
Maplebear Inc., which does business as Instacart, filed to become a publicly traded company on August 25.The company warned that it has a history of losses and “may be unable to sustain profitability or generate profitable growth in the future.” — AFP