Instacart has IPO'd on the Nasdaq, and it listed at a valuation around $10 billion USD.
👉 Background: Instacart is the American delivery company that operates a grocery delivery and pick-up service. It lets customers order groceries from retailers with the shopping being done by a personal shopper.
👉 What happened: Instacart has IPO'd on the Nasdaq, and it listed at a valuation around $10 billion USD. On day one of trading, Instacart's shares traded up as much as 43% before settling back down to close up around 12%.
👉 What else: But while this IPO seems good on face value, many of Instacart’s investors have actually lost money in the process.
💡Over the last decade, the bull market has created unrealistic expectations for many tech companies. We saw near-zero interest rates and government stimulus during the pandemic.
💡This meant tech companies - with huge losses - were able to raise money at juicy valuations. And then IPO on even juicier valuations. But with rising interest rates, investors were forced to think again about company valuations.
💡So even though Instacart IPO'd this week at a valuation of nearly $10 billion USD, this number is down big time from its previous round... when it raised at a valuation of US$39 billion.
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