Instacart’s Co-Founder, Apoorva Mehta, is checking out with a significant $1.1 billion fortune following the grocery-delivery company’s initial public offering.
Read More: Grocery delivery service Instacart aims to secure $616M in public offering
Also Read: Instacart’s revenue soars by 31% as it prepares for highly anticipated IPO
Mehta had checked out as the CEO of the company in August 2021 and gave up his board position as executive chairman as a component of the IPO process, transferring leadership to the current CEO, Fidji Simo, a former executive at Meta Platforms. Mehta had been one of the co-founders of the company back in 2012.
Over the past decade, this startup has evolved from resembling a Webvan clone into becoming the largest grocery-delivery enterprise in the United States. During the six months ending on June 30, revenue witnessed a robust 31 percent increase, reaching approximately $1.5 billion. This remarkable growth was, in part, fueled by a strategic shift towards a more profitable advertising business model.
In March 2021, at the height of its pandemic-driven surge, venture capitalists appraised the company’s worth at an impressive $39 billion. At its zenith, Apoorva Mehta’s 10 percent ownership stake had already elevated him to billionaire status, with a peak fortune of $3.5 billion. However, as viral infections waned and inflation rates surged, the San Francisco-based company encountered challenges. Over the course of the past year, it revised its internal valuation three times, ultimately settling at around $13 billion in October.
Maplebear Inc., the parent company of Instacart, established its IPO price at $30 per share on Monday, resulting in a valuation of $9.9 billion. On Tuesday, when trading commenced in New York, the stock surged by over 40 percent, eventually closing at $33.70.
“What matters is how Instacart performs over the next few years, rather than what it means on day one,” Mehta said in a telephone interview after the stock began trading. “We focus more on the long-term and that’s what we’re excited about.”
Apoorva Mehta’s wealth amounts to $1.1 billion, encompassing his 10 percent ownership in Instacart and an interest in his recently founded venture, Cloud Health Systems. Cloud Health Systems, where Mehta serves as CEO, is dedicated to tackling chronic illnesses. The health-tech startup has successfully secured $42 million in funding from investors like Thrive Capital, Andreessen Horowitz, and General Catalyst. Notably, in a financing round held in November 2022, the startup was valued at $200 million.
In the offering, Mehta offloaded stocks amounting to $21 million; however, based on the amended registration filing, he will retain his position as Instacart’s primary individual shareholder. Venture capital firms Sequoia Capital and D1 Capital Partners possess larger ownership stakes at 14 percent and 13 percent, respectively, excluding any potential additional shares they might acquire during the IPO. Instacart’s other co-founders, Brandon Leonardo and Maxwell Mullen, each possess a 2 percent stake.