US-based grocery delivery start-up Instacart has curbed its internal valuation to $10 billion, a Reuters report pointed out. 

This can be the result of the global economic hardships start-ups are facing to raise funds at a proper valuation. 

Last year, the company was valued at $39 million. The emergence of the Covid-19 pandemic bolstered doorstep deliveries. However, market volatilities in the post-pandemic world have caused difficulties. 

In October, the company set a valuation of $13 billion. The new valuation is 20 per cent lower than the previous one. Prior to this, it reduced its valuation by 40 per cent in March. 

Due to upheavals in the market, the company has also postponed its initial public offering (IPO). 

Instacart did not respond immediately to Reuter’s queries on dropping the valuation. 

In 2021, the company bagged $1.8 billion in revenues. 

Adverse global economic situations are leading companies to cut down employee bandwidth to keep the business on the profitability track. For instance, tech giant Twitter laid off 7,500 employees after the takeover of Elon Musk. Mark Zuckerberg-led Meta also laid off 13 per cent of its staff. Google also announced that it would 10,000 low-performing employees go. 

An Economic Times report pointed out that tech companies terminated 1,50,000 employees this year, which is higher than 65,000 in the recession time in 2008-09.