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Instacart Raises Another $200M, Eyeing Investments in Customer Experience, Retailer Customization and Ads

New investments raise valuation to $17.7B
Instacart delivery
Photograph courtesy of Instacart

Instacart has raised another $200 million in financing, funds the fast-growing grocery delivery company says it will devote to new features and tools to enhance the customer experience, continued investment in Instacart Enterprise to support retailers' end-to-end e-commerce needs, and additional support for Instacart Ads that connect CPG brands to customers.

The funding round, led by existing Instacart investors Valiant Peregrine Fund and D1 Capital, value the San Francisco-based tech company at a staggering $17.7 billion—about twice its value at the beginning of the year. That reflects an explosion of e-commerce grocery adoption over the course of the coronavirus pandemic that struck the U.S. in March, and the role Instacart has played in facilitating that growth, the company and its investors said.

“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,” Apoorva Mehta, founder and CEO of Instacart, said in a release “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.”

Valiant first invested in Instacart as part of its Series C round in 2014, and later invested in Instacart as part of its Series F round in 2018. D1 Capital first invested in Instacart as part of its Series F round in 2018, and later invested in Instacart as part of its Series G round in 2020.

“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. 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,” said Danny Karubian, partner, Valiant Peregrine Fund.

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

Instacart Enterprise is the “white label” service offering that allows retailers to customize their offering and feel vs. the standard Marketplace offer, now in use by more than 175 retailers including commerce platforms for more than 175 retailers across North America, including Wegmans, The Fresh Market, Food Lion and Costco Canada. Most recently it launched with Heinen’s in Cleveland.

“We believe we have a lot more work to do to deliver for all the communities we serve,” Mehta said. “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 customer.”

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