Instacart Cuts Valuation as It Kicks Off IPO

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Instacart Cuts Valuation as It Kicks Off IPO
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The grocery delivery app targets a valuation between $8.6 billion to $9.3 billion, far below its valuation of $39 billion set in a fundraising round in 2021.

Grocery delivery app Instacart set a target valuation that was way below its prior funding round in 2021, a sign of companies treading carefully as they test investor appetite for new listings.

This makes for a valuation between $8.6 billion to $9.3 billion, far below its valuation of $39 billion set in a fundraising round in 2021. The company’s internal valuation last year in March was $24 billion, and in July was reduced to $15 billion to reflect the selloff in technology stocks, a person familiar with the matter had told Barron’s.

The market for IPOs isn’t doing too great. There were 615 IPOs globally in the first half of this year, down 5% from a year earlier, and capital raised from those deals fell 36% versus a year ago, according to Ernst & Young.

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