By Akanksha Khushi
(Reuters) – U.S. grocery delivery company Instacart slashed its valuation by nearly 40% to about $24 billion, the company said on Thursday, citing recent market turbulence.
The company, a pandemic darling as doorstep delivery boomed, was valued at $39 billion in a funding round in March last year, doubling its valuation in less than six months.
“We are not immune to the market turbulence that has impacted leading technology companies – both public and private,” said an Instacart spokesperson.
The San Francisco-based startup, whose investors include Andreessen Horowitz and Sequoia Capital, hopes the move will help it attract and retain talent in a tight U.S. labor market by aligning new equity awards with the updated valuation.
Reuters had exclusively 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.
The decision to slash valuation was first reported by Bloomberg News.
Instacart launched “Instacart platform” on Wednesday to give retailers access to the company’s consumer marketplace.
(Reporting by Akanksha Khushi in Bengaluru; Editing by Sriraj Kalluvila and Sherry Jacob-Phillips)
