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Is Instacart also going public?INTL

Is Instacart also going public?

Amid a wave of IPOs and SPAC mergers, a wild direct listing appears! Grocery delivery app Instacart (unrelated to a certain popular photo-sharing app) is apparently considering going public via a direct listing.

Direct listings skip the whole raising-funds part that involves a pre-offering share sale. It seems Instacart doesn’t need a cash injection as it just raised about $265m in a private round, upping its valuation to $39b.

Moreover, Instacart is among other e-commerce companies that recorded a rise in demand as more people shopped from home during the pandemic — that huge valuation didn’t just appear from thin air, after all!

why it matters
While the recent IPO trend and its resulting uptick in valuations may be working for other tech companies, Instacart's preference for a direct listing goes to show that it's not everyone's cup of chai. Recent examples of direct listings include Spotify (SPOT) in 2018 and Slack Technologies (WORK) in 2019.