Image: Brendan Lynch/Axios
Grocery delivery app Instacart has decided to delay its much-anticipated IPO until 2023 as it believes the current stock market is too volatile, first reported by The New York Times and confirmed by Axios.
The big picture: Just 65 companies have gone public on U.S. exchanges this year, down 80.7% year over year, according to Renaissance Capital.
- U.S. IPO proceeds are down a whopping 94.1%.
Backstory: Instacart filed confidential IPO registration papers with the SEC earlier this year, and a few weeks ago was hoping to exit in 2022. But the San Francisco-based company recently changed course amid heightened volatility.
What you say: Instacart declined to comment on its IPO plans, but provided Axios with the following statement:
- “We are incredibly proud of the work our teams are doing to advance the future of grocery with our retail partners and our business has never been stronger. In Q3, our revenue grew more than 40% year over year, and our net income and Adjusted EBITDA more than doubled from the second quarter. We remain focused on building for the long term and we are excited about the opportunity ahead.”
The big question: How employees take the messages. Especially those who have been with the company for years and were expecting to sell shares as part of the IPO.
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