What IPOs could happen in 2022?

With a new year, comes new opportunities for businesses across the UK (and beyond) to kickstart their growth plans for 2022. However, some companies will be making headline news in the year ahead, by launching their initial public offering (IPO). Last year, around the world, IPOs raised a record $594bn – with companies like Deliveroo, Bumble, Roblox, Coinbase, Robinhood and Rivian all making the headlines. With 2022 rumoured to eclipse last years total raised through IPOs, Business Leader has profiled four companies you should keep an eye on.

Instacart

Instacart is one of the most popular grocery delivery and pick-up services in the US and Canada. The company has built a complex logistics system that includes agreements with more than 400 retailers covering more than 30,000 stores. The network is available to around 85% of households in the US and 80% in Canada, and can be accessed via a website and mobile app. It is also important to note that customers can get fresh food delivered directly to their door in less than two hours. Instacart was last valued at $39bn and at IPO could be valued at around $50bn. Many experts expect its flotation to take place in early 2022, after it was initially announced to launch late last year.

Databricks

Databricks is a data and AI start-up that has developed software to quickly process big data and prepare it for analysis. The company has a client base of over 5000 customers, including high-profile clients such as CVS Health, Comcast, Condé Nast, and Nationwide. The company raised $1bn in its latest funding round in early February 2021 and is currently valued at $28bn. Databricks investors include Fidelity Management and Research, Whale Rock Capital Management, Amazon, Salesforce Ventures, Andreessen Horowitz, Capital G (Google), and Microsoft. According to recent data, the company could be valued between $35-50bn as its IPO launches. Industry experts are comparing its potential launch to Snowflake Inc, who in 2020, launched the larges software IPO in history.

Starlink

Starlink is a part of Elon Musk’s SpaceX business and is known for providing high-speed internet access via its extensive range of satellites, totalling more than 1,000. There have been increased rumours in recent months of an IPO happening this year, after Musk tweeted a cryptic response to speculation that SpaceX would always remain private last summer. He later stated that he would consider taking Starlink public once cash flow becomes ‘more predictable’. Currently, the company has revenues of around $30bn, and a reported valuation of more than $42bn. In recent years, they have been received regulatory approval in the UK, Australia, Greece, and Germany – with over 10,000 users. More nations are set to sign up this year.

Monzo

Speculation is growing that British online neo-bank Monzo will be launching its IPO in London later this year. In 2020, the company reported revenues of £67.2bn, giving it a valuation of more than £2bn – therefore achieving ‘unicorn’ status. However, company CEO TS Anil did announce last year that he believed the company was undervalued and that Manzo would be worth a lot more following its listing. Following this, in December 2021, the company raised over $500m funding – increasing its valuation to $4.5bn. Although no official launch date has been revealed, Monzo is set to follow in the footsteps of Wise, Revolut and Stripe. Founded six years ago, the challenger bank has already made plans to expand into the US.