Apoorva Mehta started Instacart over a decade ago.Credit:David Paul Morris
In the last decade,the startup has transformed from a Webvan clone to the largest grocery-delivery business in the US. Revenue grew 31 per cent to about $US1.5 billion in the six months ended June 30,powered in part by a pivot to a higher-margin advertising business.
At its peak in March 2021,following a pandemic boost,the company was valued by venture capitalists at $US39 billion. Mehta’s 10 per cent stake had already made him a billionaire with a $US3.5 billion fortune at its highest point. But with the virus dwindling and inflation accelerating,the San Francisco-based company struggled and cut its internal valuation three times last year to about $US13 billion in October.
Instacart,which is incorporated as Maplebear,priced its IPO at $US30 a share,giving it a $US9.9 billion valuation. The shares jumped more than 40 per cent when they began trading on Tuesday in New York and closed 12 per cent higher.
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Mehta’s $US1.1 billion fortune includes his 10 per cent ownership of Instacart as well as a stake in his new company,Cloud Health Systems,which aims to address chronic illness. The health-tech startup,which Mehta leads as CEO,has raised $US42 million from investors including Thrive Capital,Andreessen Horowitz and General Catalyst. It was valued at $US200 million in a November 2022 financing round.
A spokesperson for Mehta declined to comment on his net worth.
Mehta sold stock worth $US21 million in the offering,but will remain Instacart’s largest individual shareholder,according to its amended registration filing. Venture firms Sequoia Capital and D1 Capital Partners own larger stakes,14 per cent and 13 per cent,respectively,which doesn’t include any additional shares they may purchase in the IPO. Instacart’s other co-founders,Brandon Leonardo and Maxwell Mullen,each own 2 per cent.