In recent reports from Reuters, it’s noted that grocery delivery app Instacart is planning to hold off on its plans to go public due to growing market uncertainty and volatility. Sources told Reuters that Instacart hasn’t ruled out plans to go public completely, but that it’s unlikely the company will reveal its IPO in 2022.
While this may be disheartening to some investors, it also makes sense given that Reuters reports the tech IPO market being in the midst of one of the worst droughts it’s seen in nearly two decades. According to data from Dealogic, “U.S. listings have raised a little over $7 billion so far this year” while traditional IPOs raised $154 billion last year comparatively.
Furthermore, capital market investors have been keeping their distance from IPOs as of late in anticipation of additional U.S. interest rate hikes in efforts to curb inflation. Things haven’t been smooth at Instacart either, with the company slowing its hiring process, cutting staff, and attempting to curb expenses.
Instacart confidentially filed its IPO with the U.S. securities regulator back in May, with sources telling Reuters the company was considering going public through either a direct listing or traditional IPO. When contacted by Reuters, Instacart declined to comment on the latest developments to its IPO plans.
For more on Instacart’s recent IPO delay, be sure to read through the full report from Reuters. And for more Instacart and IPO-related news, check out some of our previous coverage as well including Facebook app head Fidji Simo leaving the company to become CEO at Instacart, and how Intel’s self-driving subsidiary Mobileye is targeting a $15.9 billion IPO.