Instacart Files Confidentially for IPO

The filing comes as Instacart’s growth slows following a pandemic-fueled boom, when people turned to the company’s app to order groceries online rather than going to physical stores. The company raised more than $265 million in March 2021 from investors at a $39 billion valuation. It became the biggest grocery delivery company, counting supermarket giants Kroger Co. and Walmart Inc. WMT -1.05% as customers. Instacart also began delivering from nonfood retailers like Best Buy Co. BBY -5.58% and expanded its advertising business, an effort to boost sales and offset costs associated with delivery.

In 2021, Instacart named Fidji Simo, a longtime executive at Facebook parent Meta Platforms Inc., as its new chief executive. Apoorva Mehta, co-founder and former CEO of Instacart, became executive chairman of the board, saying at the time that Ms. Simo would help take the company public and expand its business.

Mr. Mehta and Ms. Simo last year also discussed possible deals with competitors DoorDash Inc. and Uber Technologies Inc., people familiar with the matter previously said.

The IPO submission was earlier reported by Bloomberg News.

Instacart’s business has grown turbulent lately, as competition increases and consumer habits shift as the pandemic recedes. Instacart’s sales grew 330% from 2019 to 2020, according to research firm 1010data Services LLC, but increased by 15% in 2021.

In March, Instacart told employees it would cut its valuation by 40% to $24 billion, citing market conditions. Ms. Simo told employees then that the valuation change didn’t affect the company’s plans to go public.

Executives have departed, too. Carolyn Everson, who joined Instacart last year as president from Meta Platforms, left about four months after starting at the company. Seth Dallaire, chief revenue officer, left for Walmart Inc. in October.

Write to Jaewon Kang at [email protected]