What is a fair valuation for Instacart after IPO?
Feb 12, 2021
33 Comments
Please make sure to account for the current market, IPOs seem to do well even if the value of the company is highly inflated (doordash/airbnb/snowflake etc.).
Currently Instacart is valued at 17.7B and supposedly plans to IPO at 30B ( https://money.usnews.com/investing/news/articles/2020-11-12/exclusive-instacart-taps-goldman-sachs-to-lead-ipo-at-30-billion-valuation-sources )
Please comment below with reasons!
#tech #instacart #ipo
comments
1) Grocery is a huge huge market ($600B in US)
2) Average order size much larger than restaurant delivery ($150 vs. $60)
3) Typical order much less time sensitive than restaurant delivery
4) Advertising of consumer packaged goods is a huge market ($200B) of which Instacart has only barely scratched the surface. Could be huge for helping new brands/products market to new customers with much better targetting+tracking compared to status quo.
2+3 mean much better unit economics compared to restaurant deliveries. 1+4 mean a huge amount of potential for growth and expansion.