🥕 Instacart IPO: Key Takeaways

I spent hours reviewing the S-1 so you don't have to

Greetings from San Francisco! 👋

Over 50,000 How They Make Money subscribers turn to us weekly for business and investment insights. Glad you're here.

---

This Friday’s upcoming free edition will feature a full review of NVIDIA’s earnings. The company crushed Wall Street’s forecasts, so it’ll be a fun one. Stay tuned!

But before that, we have a special issue for Premium subscribers today!

Instacart filed for a Nasdaq IPO under the ticker symbol CART.

If you feel a sense of déjà vu, it’s for good reason. Instacart filed for a so-called confidential filing in 2022. But in light of market volatility, the company decided not to go through with the offering.

So, we finally get to see the numbers behind the grocery delivery giant for the first time ever. When a company plans to go public, it issues a form S-1, a very long document that breaks down all the inner workings of the business, from secret sauces to skeletons in the closet. It’s like a tell-all autobiography before it hits the big stage of public trading.

I spent hours reviewing the 300+ pages of Instacart’s S-1 so you don’t have to.

Let’s review what we learned.

Today at a glance:

1. Overview.

2. Business Model.

3. Financial highlights.

4. Risks & Challenges.

5. Management.

6. Use of Proceeds.

7. Future Outlook.

8. Personal Take.

---

---

1. Overview

Instacart was born in 2012. It was the brainchild of Apoorva Mehta, a former Amazon employee. He didn't set out to reinvent grocery shopping initially. His journey began with 20 other failed startups before landing on Instacart. It's a testament to the power of perseverance in the entrepreneurial world.

Instacart Milestones (S-1)

In just a few years, Instacart transitioned from a fledgling startup in San Francisco to a nationwide phenomenon, changing how millions shop for groceries. They expanded across the United States and Canada and made several critical acquisitions like Unata, now known as Storefront Pro, an e-commerce solution for retailers.

Instacart milestones (Instacart website)

At its core, Instacart's mission has always been clear:

'Delivering the future of grocery.' It's a promise that reflects not just in its tech but in its continuous expansion efforts, ensuring more folks get groceries delivered straight to their doorstep.

Their website also states:

“Our mission is to create a world where everyone has access to the food they love and more time to enjoy it together.”

The platform connects 🏪 Retailers with 😋 Orderers (Instacart's term for customers who place orders).