Instacart files registration statement for public offering

Goldman Sachs & Co. LLC and J.P. Morgan will act as lead book-running managers for the offering, while BofA Securities, Barclays, and Citigroup will be additional book-running managers. Other companies, including Baird, JMP Securities, A Citizens Company, LionTree, Oppenheimer & Co., Piper Sandler, SoFi, Stifel, Blaylock Van, LLC, Drexel Hamilton, Loop Capital Markets, R. Seelaus & Co., LLC, Ramirez & Co., Inc., Stern, and Tigress Financial Partners, will act as co-managers for the proposed offering.

The proposed offering can only be made by means of a prospectus, which will be obtained from Goldman Sachs & Co. LLC. Moreover, a registration statement has been filed with the US Securities and Exchange Commission, but it is still to become effective, and only after can the securities be sold, or offers to buy be accepted. 

Considering the COVID-19 pandemic, consumers’ preferences have shifted towards a more digitised shopping experience, and merchants must adapt to this change, using technology to streamline store operations. Ecommerce has attracted more customers through convenience and safety, and, in the next five years, 20% to 40% of grocery ecommerce volume could be achieved from alternative locations.

Shoppers who continue to buy in-store are looking for an improved experience, as self-checkout adoption has increased by approximately 20% since the beginning of the pandemic, and 75% of respondents to McKinsey and Co’s survey stated that they will continue to use this checkout method.

On the other hand, the global online grocery delivery services industry size reached approximately USD 286 billion in 2021, and it is expected to increase to USD 2,159 billion by 2030, with a CAGR of 26% for this period. The increase is mostly due to digitisation and the expanding use of the internet and smartphones, as well as the rising urbanisation levels. Moreover, customers tend to opt for online grocery delivery services due to the ease of access, numerous payment options, and discounts that they may receive.

Recently, Instacart launched SNAP online in all 50 US states, completing their commitment to the White House from 2022. The company offers SNAP acceptance from more than 120 retail banners across over 10,000 stores. 

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