Instacart co-founder Apoorva Mehta walks away with a $1.1 billion fortune following the grocery delivery company’s IPO.
Mehta had resigned as CEO of the company in August 2021 and relinquished his position as executive chairman of the board as part of the IPO proceedings, handing over the reins to current CEO Fiji Simo , a former Meta Platforms executive. Mehta co-founded the company in 2012.
Over the past decade, the startup has grown from a Webvan clone to the largest grocery delivery company in the United States. Revenue rose 31% to about $1.5 billion in the six months ended June 30, driven in part by a shift toward higher margin. advertising company.
At its peak in March 2021, following a pandemic, the company was valued by venture capitalists at $39 billion. Mehta’s 10 percent stake had already made him a billionaire with a fortune of $3.5 billion at his peak. But with virus infections declining and inflation accelerating, the San Francisco-based company has struggled and slashed its internal valuation three times last year to about $13 billion in October.
Instacart, incorporated as Maplebear Inc., priced its IPO Monday at $30 per share, giving it a valuation of $9.9 billion. Shares jumped more than 40 percent when they began trading Tuesday in New York before 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 phone interview after the shares began trading. “We’re more focused on the long term and that’s what we’re excited about.”
Mehta’s $1.1 billion fortune includes his 10% stake in Instacart as well as a stake in his new company, Cloud Health Systems, which aims to combat chronic disease. The health tech startup, which Mehta leads as CEO, has raised $42 million from investors including Thrive Capital, Andreessen Horowitz and General Catalyst. It was valued at $200 million in a November 2022 funding round.
Mehta sold shares worth $21 million in the offering, but will remain Instacart’s largest individual shareholder, according to its amended registration filing. Venture capital firms Sequoia Capital and D1 Capital Partners have larger stakes, 14% and 13%, respectively, which does not include additional shares they might buy in the IPO. Instacart’s other co-founders, Brandon Leonardo and Maxwell Mullen, each own 2%.