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Instacart bags $200 million in latest financing round

Grocery e-commerce giant to expand retail partner base, build out menu of services and tools

Russell Redman

October 8, 2020

3 Min Read
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Instacart said the new investment hoisted the San Francisco-based company’s valuation to $17.7 billion.Instacart

Instacart has landed $200 million as part of a new funding round led by current investors Valiant Peregrine Fund and D1 Capital Partners.

San Francisco-based Instacart said Thursday that the new investment lifted the company’s valuation to $17.7 billion. The online grocery specialist noted that the latest financing reflects ongoing strong demand for its pickup and delivery services as well as the expansion of its marketplace and base of retail partners.

Plans call for Instacart to funnel the new capital toward Instacart Ads to help connect CPG brands to customers shopping online from local retailers, Instacart Enterprise to support retailers’ end-to-end e-commerce needs, and product development to enhance the customer experience with new features and tools, among other uses.

“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,” Instacart founder and CEO Apoorva Mehta (below) said in a statement.

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“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.”

Related:Instacart, Shipt team up with Bed Bath & Beyond for same-day delivery

Most recently, in June, Instacart had announced $225 million in funding — led by DST Global and General Catalyst, with D1 Capital also participating — as part of a Series G financing round that hoisted the company’s valuation to $13.8 billion. That followed a Series F funding round in October/November 2018 that boosted Instacart’s valuation to $7.87 billion.

“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,” commented Danny Karubian, partner at the Valiant Peregrine Fund. “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.”

Valiant first invested in Instacart as part of its Series C financing round in 2014 and later took part in the company’s Series F round in 2018. D1 Capital first invested in Instacart in the Series F funding round, following that up with participation in this year’s Series G round.

Related:Instacart goes outside grocery again with Sephora partnership

“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,” stated Dan Sundheim, founder of D1 Capital Partners. “The opportunity for Instacart is significant, and we’re proud to once again increase our investment in the business.”

Currently, Instacart offers its online marketplace, delivery and pickup services in more than 5,500 cities across North America, reaching over 85% of U.S. households and more than 70% of Canadian households. Since March, the company has launched or expanded with roughly 150 retailers and introduced delivery at more than 8,000 stores and pickup at over 1,500 stores.

Instacart also has continued to widen its retail partner base beyond grocery. Last month, the company made forays three new retail markets — home goods, specialty beauty care and convenience stores — through partnerships with Bed Bath & Beyond, Sephora and 7-Eleven. Previously, Instacart entered markets such as off-price/closeout retail with Big Lots, office retail with Staples U.S. and Canada, vitamins and supplements retail with Vitamin Shoppe and prescription delivery with Costco Wholesale. Instacart also delivers household decor from Walmart, pet care supplies from Petco, and over-the-counter medicines and health care products from CVS Pharmacy and Rite Aid.

“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,” Mehta added.

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About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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