Instacart co-founder Apoorva Mehta is checking out with a $1.3 billion fortune following the grocery-delivery company’s initial public offering.
Mehta, 37, who stepped down as chief executive officer in August 2021, relinquished his board position as executive chairman as part of the IPO proceedings to current CEO Fidji Simo, a former Meta Platforms Inc. executive. The transition marks the end of Mehta’s 11-year tenure with the company he co-founded in 2012.
In the last decade, the startup has transformed from a Webvan clone to the largest grocery-delivery business in the US. Revenue grew 31% to about $1.5 billion in the six months ended June 30, powered in part by a pivot to a higher-margin advertising business.
At its peak in March 2021, following a pandemic boost, the company was valued by venture capitalists at $39 billion. Mehta’s 10% stake had already made him a billionaire with a $3.5 billion fortune at its highest point. But with the virus dwindling and inflation accelerating, the San Francisco-based company struggled and cut its internal valuation three times last year to about $13 billion in October.
Instacart, which is incorporated as Maplebear Inc., priced its IPO Monday at $30 a share, giving it a $9.9 billion valuation. The shares jumped more than 40% when they began trading Tuesday in New York and were at $40.02 at 1:19 p.m.
Mehta’s $1.3 billion fortune includes his 10% ownership of Instacart as well as a stake in his new company, Cloud Health Systems, which aims to address chronic illness. 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 financing round.
A spokesperson for Mehta declined to comment on his net worth.
Mehta sold stock worth $21 million in the offering, but will remain Instacart’s largest individual shareholder, according to its amended registration filing. Venture firms Sequoia Capital and D1 Capital Partners own larger stakes, 14% and 13%, respectively, which doesn’t include any additional shares they may purchase in the IPO. Instacart’s other co-founders, Brandon Leonardo and Maxwell Mullen, each own 2%.
Mehta started Instacart over a decade ago, getting into famed startup accelerator Y Combinator after he had missed the application deadline by two months and delivered a partner a six pack of…