equitieswatch
Tuesday, September 19, 2023
About us
Advertise
  • Home
  • Stock Market
  • Finance
  • Cryptocurrency
  • Commodities
No Result
View All Result
Equitieswatch.com
No Result
View All Result

Instacart cuts valuation by 40%; squeezed by tech selloff, heated delivery wars By Reuters

by equitieswatch
March 26, 2022
in Stock Market


© Reuters. FILE PHOTO: Instacart employee Eric Cohn, 34, delivers groceries to a residence while wearing a respirator mask to help protect himself and slow the spread of the coronavirus disease (COVID-19) in Tucson, Arizona, U.S., April 4, 2020. Picture taken April

By Akanksha Khushi and Krystal Hu

(Reuters) -Instacart Inc on late Thursday cut its valuation by nearly 40% to about $24 billion due to recent market turbulence, in an unusual move that shows how public market volatility affects high-flying private companies.The new valuation marks a substantial drop from last March, when the grocery delivery firm was valued at $39 billion in a $265 million funding round from existing investors including Andreessen Horowitz and Sequoia Capital, as the coronavirus pandemic was raging and doorstep delivery boomed. The latest valuation was not decided by investors but a fair market value study performed by an independent firm, according to a source familiar with the matter, who declined to be identified because the information was not public.

Instacart has not raised any outside capital at the current valuation, the source added.

Several public companies in the delivery space, including DoorDash Inc, have seen their shares plummet in the past three months amid a broader tech selloff, and as investors worry about growth potential. “We are not immune to the market turbulence that has impacted leading technology companies – both public and private,” said an Instacart spokesperson. The company said the updated valuation would help it attract and retain talent in a tight U.S. labor market by aligning new equity awards, effectively issuing more shares to employees at a lower price. Instacart will still have to take on amped up competition. Retail giant Walmart (NYSE:) Inc beefed up its grocery deliveries and DoorDash is grabbing a bigger share of the delivery market. It recently decided to buy European rival Wolt for $8 billion.But the competition has also taken a toll on the market value of DoorDash and Uber Technologies (NYSE:) Inc. DoorDash is down 23% and Uber has shed nearly 17%. Smaller rival Buyk filed for bankruptcy protection and Fridge No More shut down its operations. Reuters reported last year that Instacart is considering going public through a direct listing, concerned that it could leave money on the table through a traditional initial public offering. Instacart’s decision to cut its valuation was first reported by Bloomberg News.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

YOU MAY ALSO LIKE

Mexico’s new airport gets boost from Panama’s Copa Airlines By Reuters

Honda and Sony Team Up to Tackle Tesla

ShareTweetPin

Search

No Result
View All Result

Recent News

Oil slips further on demand, financial market worries By Reuters

Oil Sinks Further Amid China Concerns, Weakened Economic Prospects By Investing.com

October 25, 2022
Gold Up, Set for Second Weekly Gain as Dollar Falls from 20-Year High By Investing.com

Gold Pressured Near $1,650, Copper Muted on Economic Fears By Investing.com

October 25, 2022
Explainer-What would be the impact of Russian oil sanctions in Europe? By Reuters

Oil prices edge higher as U.S. dollar eases By Reuters

October 25, 2022
Equitieswatch.com

Equitieswatch.com is your Stock Market, Finance, Forex, Cryptocurrency, Business, NFT News Website. We provide you with the latest breaking news and videos straight from the Business industry.

  • Home
  • About us
  • Contact
  • Privacy Policy

© 2022 www.equitieswatch.com

No Result
View All Result
  • Home
  • Stock Market
  • Finance
  • Cryptocurrency
  • Commodities

© 2022 www.equitieswatch.com