Unicorn delivery app Instacart 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 on Thursday (Oct. 8). The new round of funding came from existing investors Valiant Peregrine Fund and D1 Capital Partners.
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.
“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.”
Instacart said it has already surpassed its 2025 milestones and is tracking to exceed $35 billion in grocery sales in 2020, according to a Bloomberg report. 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. The company also said money would be earmarked to expand Instacart Enterprise, which supports retailers’ end-to-end eCommerce needs. There are also plans to connect Instacart Ads to consumer packaged goods (CPG) brands.
The startup also recently partnered with Mastercard to offer incentives to customers with annual Instacart memberships. In September, Instacart joined up with 7-Eleven and anticipates a nationwide rollout to over 7,000 stores nationwide. Other convenience stores are also being added.
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.
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