- Instacart, an American company that operates a grocery delivery and pick-up service
- It has raised $200 million as part of a new financing round
- Funding will be used for product development, new features, and enhanced tools
Instacart App has raised $200 million as part of a new financing round, which upped the company’s valuation to $17.7 billion, the Silicon Valley startup announced. The new round of funding came from existing investors Valiant Peregrine Fund and D1 Capital Partners.
The delivery app is an American company that operates a grocery delivery and pick-up service in the United States and Canada. The company offers its services via a website and mobile app. The service allows customers to order groceries from participating retailers with the shopping being done by a personal shopper.
The company has raised more than $2 billion since it was founded in 2012 by Apoorva Mehta, Brandon Leonardo, and Max Mullen. Instacart’s valuation has more than doubled since the COVID-19 pandemic caused more people to shop online and from home.
In March 2017, Instacart raised $400 million in funding at a valuation of $3.4 billion.
In February 2018, the company raised $200 million in a funding round led by Coatue Management, Glade Brook Capital Partners, and existing investors. Instacart raised $600 million in a funding round led by hedge fund D1 Capital Partners. The round valued the company at $7.6 billion in 2018.
In November 2018, Instacart raised an additional $271 million from investors. This brought Instacart’s latest round of fundraising to $871 million and valuation to $7.87 billion.
In June 2020, Instacart raised $225 million in a financing round led by DST Global and General Catalyst.
Instacart’s Expansion Plans
“Instacart has gone from a convenience to a lifeline for millions of people,” the company said. “Today’s investment comes as consumer demand for Instacart’s service continues to grow and we continue to expand our marketplace with new and existing retail partners.” the spokesperson added.
Instacart has already surpassed its 2025 milestones and hopes to exceed $35 billion in grocery sales in 2020. The company partners with over 500 retailers and delivers goods from nearly 40,000 store locations across the U.S. and Canada.
The latest funds will likely be used for product development, new features, and enhanced tools to benefit customers. Additionally, the money would be earmarked to expand Instacart Enterprise, to support retailers’ eCommerce needs. There are also plans to connect Instacart Ads to consumer packaged goods (CPG) brands.
The startup recently partnered with Mastercard to offer incentives to customers with annual Instacart memberships. In September, Instacart collaborated with 7-Eleven. They also expect a nationwide rollout to over 7,000 stores nationwide, including convenience stores.
Pandemic aside, it is expected that home delivery groceries and other goods will be a long-term trend that will expand beyond food and groceries.