Instacart, which is one of the most valuable startups in San Francisco, finally became public on Tuesday while converting its theoretical valuations of price into stone-hard cash for multiple employees.
Apoorva Mehta, one of the co-founders of the grocery delivery app, is making off just like a bandit. The 37-year-old has 10% of the company, despite cashing out shares that are worth about $ 20 million during the initial public offering as per a prospectus document that was filed with the Securities and Exchange Commission and was dated on 18th September.
This marks the end of the yearlong journey for Mehta, who co-founded the company back in 2012. He had already stepped down as the CEO of Instacart in 2021 but was still a chair of the board of directors of the organization.
Now, he will be resigning from that position as well and taking home approximately 850 million in the stocks of Instacart.
In the SEC filing, Instacart confirmed the resignation as well as the stocks that Mehta holds.
Around 1,000 Instacart employees celebrated at the company’s San Francisco headquarters Tuesday, Instacart told Quartz.
Mehta posted on X, which was formerly known as Twitter, that
“the idea for Instacart came to him when he found his refrigerator nearly empty in his San Francisco apartment in 2012. He’d tried out 20 other startup ideas in the two years prior, he told the Los Angeles Times in 2017.”
“Instacart turned out to be his big winner, a grocery delivery platform that built itself to profitability through a booming advertising business and the use of low-paid gig workers.”
Now, he is cutting all ties with the leadership of the company but still holds a part of the company stock that is more than what the company has put up in the open market on Tuesday.
“A lot of people have said that perhaps I was pushed out of the company,” Mehta discusses with Forbes in a story that was published on Tuesday. But he cleared out that he is leaving so that he can focus on his brand new start-up – Cloud Health Systems. “The reality is, if I wanted to be the CEO of Instacart, I would be the CEO of Instacart.”