Instacart IPO Date Draws Near as PepsiCo Makes a Strategic Investment

Instacart IPO Date Draws Near as PepsiCo Makes a Strategic Investment

An Instacart IPO has been in the works for several years, but it could soon come to fruition after a strategic investment from PepsiCo. Photo courtesy of Instacart.

As PepsiCo, Inc. positions itself at the forefront of digital advancements, the company recently declared its intention to purchase $175 million of Instacart’s Series A preferred convertible stock. This pivotal move was revealed alongside Instacart’s Form S-1 filed on August 25 with the Securities and Exchange Commission (SEC), indicating plans for its much-anticipated initial public offering (IPO) — the Instacart IPO date.

Instacart, born in 2012 with the goal of bringing the grocery sector into the digital age and redefining shopping convenience, has formed partnerships with an impressive 1,400-plus retail partners, spanning over 85 percent of the US grocery scene.

The filings gearing up for the Instacart IPO date revealed that Instacart amassed a gross transaction value (GTV) nearing $29 billion in 2022. The GTV reflects the product pricing displayed on Instacart, coupled with taxes, deposits and additional regional fees. 

Notably, in fiscal 2022, Instacart’s net income surged to $428 million, a sharp contrast to a $73 million loss in the previous fiscal year. This rise in 2022 also factored in a $358 million tax benefit, linked to the company’s valuation adjustments on deferred tax assets within the US.

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The buzz around the Instacart IPO date has coincided with PepsiCo’s endeavors to expand its digital horizon. Ramon L. Laguarta, the Chairman and CEO of PepsiCo, delved into this strategy during a July 13 conference, highlighting the company’s vision to harness richer data by bolstering digitalization and superior execution strategies.

In a similar vein, during a 2022 presentation at the Consumer Analyst Group of New York’s virtual conference, Laguarta underscored PepsiCo’s drive to integrate technology for growth.

Articulating his vision, Laguarta said, “We’ll continue to invest in people and technology and build advantaged omnichannel, data and analytics and consumer insights capabilities, while also making targeted IT investments to modernize and harmonize our systems.”

In parallel, as the Instacart IPO date nears, the company’s SEC filing emphasizes a dedication to investments with a long-term vision. 

“Every decision we make as a company stems from a fundamental belief that, in order to succeed, we need to work together across the entire grocery industry — supporting retailers and brand partners, giving consumers an affordable, accessible and personalized experience they can’t find anywhere else, and creating flexible earnings opportunities for shoppers,” Instacart said in its SEC filing.

Instacart further elaborated on nine value pillars it extends to brands, including return on investment (ROI), targeting high-intent customers, swift actionability and beyond. 

“CPG [consumer packaged goods] brands are seeking more opportunities to connect digital advertising investments directly to sales impact,” Instacart said. “Instacart Ads offers CPG brands an opportunity to move products off of store shelves as a direct result of their ads on Instacart. We help them advertise their products in a way that can enable an immediate purchase that can be delivered to the customer within hours or even minutes. The real-time nature of purchase and consumption allows brands to optimize their targeting and messaging to achieve compelling returns on investment.”

With the Instacart IPO date looming, the strategic moves by both PepsiCo and Instacart stand as a testament to their commitment to shaping the digital trajectory of the grocery sector.