Written by Brenda Nakalema

Instacart Files Long-Awaited IPO in Confidentiality

Instacart reported that it had confidentially filed for its much-anticipated initial public offering only weeks after the grocery delivery app …

Instacart reported that it had confidentially filed for its much-anticipated initial public offering only weeks after the grocery delivery app lowered its estimated valuation by roughly 40%.

In a statement released on Wednesday, the San-Francisco-based company said it had submitted a draft registration form with the Securities and Exchange Commission, which is expected to become effective after the regulator’s review process. However, the company neglected to provide further details about the size and timing of the IPO.

The filing follows an announcement made by the company in March, in which it informed investors about its decision to lower its valuation from $39 billion to $24 billion in an attempt to reflect this year’s sell-off in technology stocks.

Although the company experienced high demand for its delivery service during the Covid-19 pandemic, levels have since dropped as lockdown restrictions have eased, allowing shoppers to return to physical stores.

The broad tech sell-off has forced shares down of instacart’s closest publicly traded e-commerce competitors, such as DoorDash (ticker: DASH) and Shopify (ticker: SHOP), whose shares have fallen by more than 60% and 76%, respectively, so far.