Instacart slashes its valuation by almost 40% to $24B: report
Instacart hopes aligning new equity awards with the updated valuation will help recruiting and retention efforts
FOX Business Flash top headlines for March 24
Here are your FOX Business Flash top headlines for March 24.
Instacart is reportedly slashing its valuation by almost 40% to about $24 billion.
It's a move to help the company attract talent and adapt to market conditions, the company tells Bloomberg.
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The food-delivery company had been valued at $39 billion in its most recent fundraising round.
Last year it received $265 million from investors such as Andreessen Horowitz, Sequoia Capital and D1 Capital Partners, as well as Fidelity Management & Research Co. and T. Rowe Price Associates Inc.
Close-up of Instacart lanyard, typically worn by workers for the gig economy grocery delivery service while shopping for clients in grocery stores. (Photo by Smith Collection/Gado/Getty Images / Getty Images)
Instacart hopes that aligning new equity awards with the updated valuation will help its recruiting and retention efforts.
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"Our team built Instacart into the market leader it is today, and we believe investing in them is the right thing to do," Instacart said in a statement Thursday. "Markets go up and down, but we are focused on Instacart’s long-term opportunity to power the future of grocery with our partners."
In this photo illustration a Instacart logo seen displayed on a smartphone with with fruits in a market in the background. (Photo Illustration by Thiago Prudencio/SOPA Images/LightRocket via Getty Images / Getty Images)
Instacart became a pandemic-related darling, best known for an app that lets consumers order groceries online from a range of stores.
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The company's growth started to stall as the pandemic began to wane, according to Bloomberg.
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Instacart launched a platform of services this week to sell to supermarkets in a bid to bolster its enterprise business.
The company's success during the pandemic created a buzz about an IPO, but no timing has been set.