Instacart co-founder Apoorva Mehta recently separated from the startup following its highly successful IPO, which generated a substantial fortune of $1.3 billion. Mehta will, however, continue to be the largest shareholder in the company. He had previously stepped down as the CEO of Instacart in August 2021. Later, as part of the IPO proceedings, he took on the role of executive chairman on the board. Mehta has now handed over all of his duties to Fidji Simo, the current CEO and a former executive at Meta Platforms.
The Instacart IPO, which was priced at $30 a share, initially boosted the company's valuation to $9.9 billion. On the day of its IPO launch, the company's shares surged by more than 40% as they began trading in New York. Yet, on the second day of trading, the grocery delivery firm's stock fell below its IPO price, highlighting the challenges of convincing investors of its plans to expand into advertising and the grocery software business.
Instacart, experienced an 11% decline in its stock price, closing at $30.10 and even dropping to as low as $29.96 during the last hour of trading, slipping below the $30 level at which shares were sold during the IPO. While shares initially surged by as much as 43% on Tuesday, they later receded and ended the day with a 12% increase.
Apoorva Mehta, during the launch of Instacart, emphasized the company's focus on long-term performance. Mehta's perspective underscores the company's commitment to its long-term growth and success.
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