As consumer demand for grocery delivery intensifies, Instacart is showing no sign of letting up. The San Francisco-based delivery service has closed a Series E fundraising round of $200 million, led by Coatue Management and Glade Brook Capital Partners, valuing the company at $2.4 billion, according to a company statement.
Instacart’s announcement arrives days after Amazon’s launch of Prime Now same-day delivery capabilities from Whole Foods stores in four markets, with plans to expand the service nationwide later this year.
The funding—which brings Instacart’s total raised capital since launch to nearly $900 million—will help the company compete with Amazon by strengthening its retailer partnerships and expanding its services beyond delivery.
“In the next few years, we will be working hard to innovate for our customers by offering them more convenience and better selection at competitive prices,” Instacart founder and CEO Apoorva Mehta said in a statement. “Recognizing that our shoppers need better tools and processes to be able to offer great customer service, we will be investing in building robust shopper support teams and software.”
Since its launch five years ago, Instacart has inked deals with seven of the top eight North American grocery retailers—including Albertsons Cos., Kroger, Ahold Delhaize, Publix and Loblaw—bringing the company to nearly 200 grocery partners. In 2017, the company launched in more than 160 new metropolitan areas and is now available to 70 million households across the U.S. and Canada.
Whole Foods is also an Instacart partner and investor, having inked a deal prior to the Amazon acquisition.
A year ago, Instacart operated in 28 markets and reached just 16% of U.S. shoppers.