Instacart Files for IPO – Is Now a Good Time to Invest in a New Public Company?

Toronto, Canada- November 14, 2020: Instacart company closeup sign is seen in Toronto, Canada.
JHVEPhoto / Getty Images

Online grocery delivery app Instacart has announced it has filed for an initial public offering (IPO) of its company. The filing was confidential, but Instacart’s statement confirms an earlier Bloomberg report.

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The listing could happen this year, next year — or not at all, according to Bloomberg, whose reporters spoke to people familiar with the matter. Goldman Sachs Group Inc., JP Morgan Chase & Co., and other banks are involved in the offering, per Bloomberg sources.

In March, Instacart cut its valuation to $24 billion, a 40% drop from the height of the pandemic, when the company was valued at $39 billion and riding the waves of the rising home grocery delivery trend. However, the company also recently raised $200 million in funding, and FinanceBuzz writes that an IPO could push the valuation to $30 billion.

If the company continues to thrive in a post-pandemic era, investing in the Instacart IPO could be a smart choice. As the stock market, overall, continues to dip and investors are exercising caution, you could be able to get in on the Instacart IPO at a tremendous value.

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As with any stock, in any market, it’s important to look at the fundamentals and the company’s long-term prospects. As investor Warren Buffett famously said, “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.” He has also said of his investment firm Berkshire-Hathaway, “Our favorite holding period is forever.”

Even with more people venturing out of their homes to shop for groceries in person, Instacart shows potential as a growth company. Instacart works with 500 retailers — and recently partnered with grocery chain Kroger on the development of a digital convenience store, which could reduce delivery times from one or two hours down to 30 minutes, FinanceBuzz reported.

The Instacart app continues to evolve, offering a deals tab and a dollar store hub to help customers save even more on groceries and household necessities. It also has a pick-up option for those who don’t mind leaving their home (or have the capability to do so) but don’t want to deal with the hassles of grocery shopping.

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With all these developments on the horizon, those who consider investing in the Instacart IPO could find themselves with a solid long-term investment, regardless of what the economy does over the next 12 months.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

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