Grocery Delivery Platform Instacart Gets $200 Million From Existing Backers

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Instacart

San Francisco-based Instacart, the online grocery delivery company has announced picking up $200 million in a fresh round of financing led by existing backers, Valiant Peregrine Fund, and D1 Capital Partners. The firm’s post-money valuation now is $17.7 billion.

Before this round, the firm had picked up $100 million capital from T. Rowe Price just over 3 months back. The current financing takes the total amount raised by the company to $2.4 billion. General Catalyst, Tiger Global Management, DST Global, Coatue, Kleiner Perkins Caufield & Byers, Andreessen Horowitz, Sequoia Capital, Y Combinator, and Valiant Capital Partners are the few of the other big names who have backed the firm.

Instacart was started in 2012 by Apoorva Mehta, Brandon Leonardo, and Max Mullen as an online grocery delivery platform. The firm has grown leaps and bounds since its inception and it turned profitable in the 2nd quarter of the year. Amid the COVID-19 pandemic, there have been a massive surge in the demand for platforms like Instacart.

The firm delivers groceries and home essentials across the US and Canada from more than 40,000 store locations. The firm wants to use the freshly raised capital to add more features and tools in order to offer a better customer experience and it also wants to pump the money towards Instacart Enterprise and Instacart Ads.

Apoorva Mehta, the CEO of the firm commenting on the funding said that "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.”

Valiant Peregrine Fund partner Danny Karubian noted that "They’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."

 

Image courtesy: VentureBeat

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