Amidst the backdrop of fluctuating conditions in the public markets, the once highly esteemed darling of the COVID-19 pandemic, Instacart, has witnessed a significant reduction in its internal valuation. According to a report from The Information on Tuesday, the grocery delivery start-up has adjusted its valuation down to $10 billion, as reported by two individuals familiar with the matter.
This new valuation represents a 20% decrease from its previous valuation of $13 billion in October, continuing a trend of decreasing valuations throughout the year. The downward adjustments began with a substantial 40% reduction in March. Instacart has not yet responded to a request for comment from Reuters regarding this report.
Just a year ago, during the height of the COVID-19 pandemic, Instacart boasted a valuation of $39 billion, driven by the surge in demand for doorstep deliveries due to the pandemic. However, these recent downward adjustments underscore how the volatility of the public markets can impact even highly successful private companies.
Furthermore, Instacart has also opted to postpone its much-anticipated initial public offering (IPO) this year, citing uncertainties in the market as the reason for the delay.