Squeezed by tech selloff, Instacart cuts valuation by 40% to $24b

Photo: Marques Thomas / Unsplash.com

Instacart on Thursday last week 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.

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