Instacart Co-Founder Apoorva Mehta Reaps $1.3 Billion As He Quits Company
India-West News Desk
SAN FRANCISCO, CA – Instacart co-founder Apoorva Mehta is celebrating a colossal financial milestone as he cashes out with a staggering $1.3 billion fortune following the successful initial public offering (IPO) of the grocery-delivery giant. The 37-year-old entrepreneur, who had stepped down from his role as chief executive officer in August 2021, bid farewell to his board position as executive chairman as part of the IPO transition. In his place, Fidji Simo, a former executive from Meta Platforms Inc., now steers the ship as CEO, marking the end of Mehta’s 11-year journey with the company he co-founded back in 2012.
Over the last decade, Instacart has undergone a remarkable transformation, evolving from a Webvan clone into the largest player in the US grocery-delivery market, Fortune pointed out in a report. The company’s revenue soared by an impressive 31%, reaching approximately $1.5 billion in the six months leading up to June 30. This surge in revenue was fueled, in part, by a strategic pivot towards a higher-margin advertising business.
Instacart reached its zenith in March 2021, riding high on the wave of a pandemic-induced surge in demand, with venture capitalists valuing the company at an eye-popping $39 billion. During this period, Mehta’s 10% ownership stake had already catapulted him into the billionaire club, amassing a staggering fortune of $3.5 billion at its peak. However, as the pandemic waned and inflationary pressures mounted, the San Francisco-based grocery delivery giant faced challenges. Consequently, it revised its internal valuation down three times in the course of the past year, settling at around $13 billion by October.
Mehta’s $1.3 billion windfall comprises his 10% stake in Instacart, as well as an ownership interest in his latest venture, Cloud Health Systems, Fortune said. This health-tech startup, spearheaded by Mehta in his role as CEO, successfully raised $42 million from investors including Thrive Capital, Andreessen Horowitz, and General Catalyst. In November 2022, it was valued at $200 million in a financing round.
It’s worth noting that Mehta sold Instacart stock valued at $21 million as part of the IPO, yet he retains his position as the company’s largest individual shareholder, as indicated by the amended registration filing. Notably, venture firms Sequoia Capital and D1 Capital Partners hold larger stakes at 14% and 13%, respectively, though this does not account for any additional shares they might acquire through the IPO. Instacart’s other co-founders, Brandon Leonardo and Maxwell Mullen, each maintain a 2% stake.
Although he was born in India and raised in Libya, Mehta attributes his inspiration for founding Instacart to his time spent in a small town outside of Toronto. There, he grew frustrated with the experience of waiting in the cold at a bus stop with bags of groceries, firmly believing that grocery shopping should have evolved beyond such inconveniences.
Before embarking on his Instacart journey, Mehta honed his skills with a two-year stint working on supply chain logistics at Amazon. It was after this tenure that he decided to strike out on his own and create a company.