By Maplebear, known as Instacart in the business world, has witnessed shares hovering closely around their initial public offering price of $30 ever since the company went public in September. Venture capital giant Sequoia Capital made a strategic move to acquire more shares in late February when they were trading just below the IPO price.
Share Performance and Recent Events
The stock of Maplebear has surged over 30% this year, following a closing price of $23.47 at the end of 2023. However, Instacart made headlines in mid-February with the announcement of a 7% staff reduction and the impending departures of their chief technology officer and chief operating officer. Intense competition from rivals like DoorDash and Uber Technologies’ Uber Eats is adding pressure to Instacart’s operations.
Strategic Investments by Sequoia Capital
Sequoia Capital affiliates invested a substantial $61.8 million between February 20 and February 26 to acquire nearly 2.2 million shares of Maplebear, at an average price of $28.63 per share. As per filings with the Securities and Exchange Commission, Sequoia now boasts ownership of 54.3 million Maplebear shares.
Sequoia’s Influence in Instacart and DoorDash
Sequoia Capital, one of the leading venture capital firms, has a significant presence in both Instacart and DoorDash. Despite not responding to a request for comment on their stock purchase, Sequoia remains the largest investor in Instacart. Ravi Gupta, its representative on Instacart’s board, previously held key positions within the company as Chief Operating Officer and Chief Financial Officer from 2015 to 2019.
Michael Moritz’s Role
Michael Moritz, a partner at Sequoia Capital until July 2023, now serves as a senior adviser to Sequoia Heritage, a private investment partnership. He also holds a seat on Instacart’s board, further solidifying Sequoia’s ties with the company.
Involvement in DoorDash
Apart from Instacart, Sequoia is the largest investor in DoorDash through its publicly traded Class A shares. As of December 31, Sequoia held 31.7 million Class A shares in DoorDash and had a representation on the company’s board.
DoorDash Growth
DoorDash, known for delivering restaurant food, groceries, and alcoholic beverages, has experienced substantial growth. Its Class A shares have surged by 24% this year, following a doubling in value in 2023.
With its fingers in multiple pies, Sequoia Capital’s influence in the tech and delivery sectors is undeniable.
Inside Scoop: Stock Transactions Unveiled
Regularly updated, Inside Scoop delves into the world of stock transactions by corporate executives, board members, large shareholders, politicians, and other notable figures. These individuals, known as insiders, are obligated to report their stock trades to regulatory bodies like the Securities and Exchange Commission.
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