Instacart ponders going public through a direct listing, sources say

Instacart is considering going public via a direct listing, people familiar with the matter told to Reuters.

Earlier this week, on-demand grocery delivery platform Instacart raised $ 265 million in a new funding round from Andreessen Horowitz, Sequoia Capital, D1 Capital Partners and other existing investors. The company’s valuation reached $ 39 billion with the new funding round. 

Two of the sources said that investment bankers working on Instacart’s listing have estimated that it could be valued by the stock market at more than $50 billion.

According to Dealogic, shares of newly listed U.S. companies that went public through an IPO ended trading up 36.2% on average on their first day last year, compared to 17.2% in 2019.

The company has yet to make a final decision on how it will go public, the sources emphasized.

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