Grocery delivery app Instacart said on Friday founder Apoorva Mehta would step down from his role as chairman and leave the company once it goes public.
Chief Executive Fidji Simo, the former head of Meta Inc’s Facebook app, will succeed Mehta. She joined Instacart as CEO in August 2021 after Mehta transitioned to executive chairman.
Mehta said in a Twitter post that stepping down from the company’s board would allow him to pursue other opportunities.
However, there will be no change in his ownership in the company, a source close to Instacart told Reuters.
Instacart in May said it had confidentially filed with the US securities regulator to go public. Reuters had reported that the company was considering going public through either a direct listing or a traditional IPO.
In March, the San Francisco-based firm slashed its valuation by nearly 40% to about $24 billion, following market turbulence that impacted leading technology companies.
Launched in 2012, Instacart benefited from the pandemic-led boom for doorstep delivery, although it faced stiff competition from companies such as DoorDash Inc and SoftBank-backed delivery startup GoPuff, which is also gearing up for a US IPO.
- Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Krishna Chandra Eluri and Devika Syamnath, of Reuters.