Grocery delivery startup Instacart picks up $100M at $13.8B valuation
After seeing customer orders on its grocery delivery platform surge more than sixfold in May, Instacart Inc. today said that it has raised $100 million at a $13.8 billion valuation.
The investment was first reported by Axios. The $13.8 billion valuation is an increase over the $13.7 billion Instacart received last month, when the startup closed a $225 million funding round co-led by DST Global and General Catalyst. Its latest $100 million capital injection was provided by T. Rowe Price Associates, a spokesperson for Instacart said in a statement confirming the funding.
San Francisco-based Instacart’s platform provides access to a network of personal shoppers who pick up items from stores and deliver them to customers’ doorsteps. The startup has seen demand soar during the coronavirus pandemic. In early May, Instacart reported that order volume increased more than 500% year-over-year, and a few weeks earlier announced it would recruit 250,000 additional shoppers to help address the influx of new users.
Thanks partly to its recent expansion, Instacart says it can now reach 85% of U.S. households. The startup’s platform is also accessible to 70% of households in Canada.
The $325 million Instacart raised over its two recent funding rounds should allow it to double down on these recent growth efforts. Instacart didn’t specify today what it plans to do with the latest $100 million but did share some details after the previous round closed last month. The startup is looking to build out new “services and features” to support shoppers as well as expand its budding ad service, which allows brands to promote their merchandise in its platform.
Instacart’s recent funding is the latest sign of venture capitalists’ growing interest in the food delivery market. The investment comes just weeks after DoorDash Inc., one of the biggest players in the adjacent restaurant delivery market, confirmed it’s raising $400 million at a $16 billion valuation.
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