- Instacart — a company that is known for its grocery delivery and pick-up service — announced it has raised $200 million at a valuation of $17.7 billion
Instacart — a company that is known for its grocery delivery and pick-up service — announced it has raised $200 million in a new round of funding. This round of funding valued Instacart at $17.7 billion.
Just a few months ago, Instacart raised $225 million at a $13.8 billion valuation. The funding round was led by existing investors Valiant Peregrine Fund and D1 Capital.
During the pandemic, Instacart said that its order volumes have increased as much as 500% year-over-year in North America. The increase in order volumes is largely due to consumers following global shelter-in-place orders along with the broader popularity for on-demand services.
In order to adjust to the surge in demand, Instacart now has over 500,000 people on its platform. This is up from 200,000 at the beginning of the pandemic.
The new funding round will be used for developing new features on the app. And Instacart will also in Instacart Ads.
KEY QUOTES:
“Today’s investment is a testament to the strong conviction our existing investors have in the strength of our teams and the important role Instacart plays for customers, partners, and the entire grocery ecosystem. I’m incredibly proud of our team’s work to scale our business this past year and rise to meet the unprecedented consumer demand and growth. Their tireless efforts have allowed us to expand our marketplace to more than 500 retailers, deliver from nearly 40,000 store locations across North America and move grocery delivery into the mainstream as millions of people across North America now rely on Instacart. While we’re proud of these milestones, we believe we have a lot more work to do to deliver for all the communities we serve. Going forward, our teams remain relentlessly focused on building the absolute best online grocery shopping experience while partnering with iconic retailers to offer more selection and value to customers.”
— Apoorva Mehta, Founder and CEO of Instacart
“We’ve been highly impressed by the way Apoorva and the Instacart team have navigated the company through an operating environment unlike any we’ve ever seen. We are excited to increase our investment in Instacart as the company further establishes itself as a leader in the massive North American online grocery space.”
— Danny Karubian, Partner, Valiant Peregrine Fund
“Our conviction in the strength of Instacart’s management team and business model continues to grow as we’ve watched the company lead this important industry during a period of unprecedented growth. The opportunity for Instacart is significant, and we’re proud to once again increase our investment in the business.”
— Dan Sundheim, Founder of D1 Capital Partners
