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Tech Companies Instacart, Klaviyo, and Arm File for IPOs

Last week, popular tech companies Instacart, Klaviyo, and Arm filed for initial public offerings (IPOs). These upcoming IPOs will provide insight into the demand for new technology offerings among investors and could set the tone for the rest of the year.

Instacart, a grocery delivery startup, and Klaviyo, a data and marketing automation company, have very different stories to tell. Instacart, which previously had a valuation of $39 billion, has seen its valuation drop to $24 billion due to declining growth and market conditions. However, the company has managed to turn a profit by controlling costs and increasing revenue. Klaviyo, on the other hand, has not had to reduce its valuation and has experienced significant growth, with revenue increasing by 50% in the second quarter. Klaviyo's technology helps clients store user data and enables targeted marketing.

Arm, a chip designer owned by SoftBank, plans to go public on the Nasdaq after being taken private seven years ago. Arm is different from Instacart and Klaviyo in that it is a much larger company and has a history as a public company. Its IPO represents SoftBank's desire for liquidity after facing losses from previous investments.

The success of these IPOs will shape the market for technology offerings in the coming months. If these companies perform well, it could encourage other management teams to go public and seize the opportunity. However, market conditions have changed since 2020 and 2021 when tech companies achieved high valuations, so it remains to be seen how these IPOs will be received.

Sources:
– CNBC: https://www.cnbc.com/2023/08/11/instacart-klaviyo-file-for-ipos-to-test-new-tech-offering-demand.html

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