Instacart Eyes IPO Before Year’s End, Report Says

Instacart will likely go public before the end of the year, a move coming earlier than expected, unnamed sources told The Wall Street Journal (WSJ) Thursday (July 28).

The report comes during a extremely slow market for new stock listings. This year has been one of the worst for IPOs in over a decade.

Instacart had confidentially filed for an IPO with the Securities and Exchange Commission earlier  this year, while there was a broad stock market selloff. Markets remain volatile. Now Instacart is responding to SEC comments on its IPO documents, sources said.

The grocery delivery company was profitable in Q2 this year. Bankers for the company have reportedly been approaching investors for “testing-the-waters” meetings, according to some — allowing investors to get acquainted with company management and the team, and to gauge the appetite for the stock.

WSJ wrote that Instacart is looking into a traditional IPO, which would raise cash to be used for future acquisitions, according to the sources.

But there’s nothing set in stone yet, and things could change depending on a variety of factors.

WSJ also added that the company has over $1 billion in cash and marketable securities.

PYMNTS wrote recently that Instacart had expanded its Electronic Benefits Transfer and Supplemental Nutrition Assistance Program (EBT, SNAP) to 10 new states.

The expansion will cover the states of Colorado, Hawaii, Idaho, Louisiana, Montana, New Mexico, Oregon, Utah, Washington and Wyoming. Users will now be able to buy groceries through the Instacart app and retailers’ Instacart platform-powered eCommerce sites.

See also: Instacart Expands EBT SNAP Offerings

According to the company, some of the first to accept EBT SNAP online include Albertsons and Sprouts Farmers Market.

“At Instacart, our goal is to continue unlocking access to nutritious food for those who need it most,” said Sarah Mastrorocco, vice president of access to food and nutrition. “We’ve long advocated to expand online EBT SNAP acceptance, and we’re proud to bring this critical service to people in 10 additional states in partnership with grocers that people know, love and trust.”