On Tuesday, the Information reported that Instacart, a well known grocery delivery start-up, has diminished its internal valuation to $10 billion, citing two people familiar with the situation.
The online grocery behemoth, whose new valuation is 20% lower from $13 billion in October, has been snipping its valuation this year, beginning with a 40% reduction in March.
Instacart did not immediately respond to a Reuters’ request for comment on the report.
During the COVID-19 pandemic, the company was valued at $39 billion last year, as rising infections boosted doorstep deliveries, but the recent cuts in its valuation underscore the effects of public market volatility on high-flying private companies.
The start-up also delayed its much awaited IPO this year amid market uncertainty.