On Thursday, Instacart announced to its 3,000 employees that its valuation is now at $24 billion from $39 billion due to market conditions.
An Instacart spokesperson told CNN Business on Friday that they are “confident in the strength of our business, but we are not immune to the market turbulence that has impacted leading technology companies both public and private.”
“We can’t control the market, but we can control how we respond,” the spokesperson added, noting that employees were informed about changes to equity in response to the new valuation. “Markets go up and down, but we are focused on Instacart’s long-term opportunity to power the future of grocery with our partners.”
Instacart cited that the stocks of Shopify, Meta, and DoorDash had also decreased significantly compared to their peak in the last year. Instacart acknowledged that its marketplace stabilized after the holiday season and the pandemic-fueled demand. During this time, Instacart’s orders grew by 30% from the year prior, and the demand remains high.
Instacart announced 15-minute deliveries with select supermarkets such as Publix in the same week, among other new services for retail partners.
Instacart is speculated to be gunning to become an IPO. CEO Fidji Simo declined to comment in an interview with CNN Business but said, “We do plan to be a public company at some point, and I really wanted to make sure that, as we think about that, we really attract investors that understand the vision for the company.”
Simo left her post as a Facebook VP and head of the company’s flagship app to lead the startup last summer.