San Francisco-based online grocery store Instacart recently announced that it has raised $225mn as part of a new financing round led by DST Global and General Catalyst, with existing investor D1 Capital Partners participating.
The investment comes as Instacart continues to experience an unprecedented surge in customer demand for grocery delivery and pickup due to the coronavirus pandemic. The recent fundraising increased the company’s valuation to $13.7bn.
Commenting on the recent investment, Founder and CEO of Instacart Apoorva Mehta said, “COVID-19 created a massive shift for the grocery industry and forever changed how people view the necessity of on-demand services. Overnight, Instacart became an essential service for millions of families across North America and our teams have worked incredibly hard to safely serve customers and shoppers during this time of need. This pandemic has fundamentally reshaped the way people think about grocery and ecommerce, and we’re proud to have Instacart continue to play an important role in people’s lives now and long after this crisis subsides,” said Apoorva Mehta, Founder and CEO of Instacart.
With the new investment the company aims to deepen support for shoppers and partners, and further fund strategic initiatives such as advertising and enterprise businesses.
“It’s been remarkable to watch the Instacart team, in these unprecedented times, not only successfully scale its operations and technology to serve customers, but also provide earning opportunities for hundreds of thousands of shoppers, as well as continued business for its retail partners. We are excited to partner with Apoorva and the Instacart team as they deliver long-term value for customers, shoppers, retailers and advertisers for years to come,” said Saurabh Gupta, Managing Partner at DST Global.
“That Instacart was able to meet an unprecedented increase in consumer need over the past several challenging months is just one of many signals of the company’s operational excellence. We’ve been following this team since the beginning and, today, we’re proud to partner with Instacart as they continue to build the service – with its ease of use, selection, and affordability – to make online grocery accessible for millions of people across North America,” said Kyle Doherty, Managing Director, General Catalyst Endurance fund.
“Instacart’s response to COVID-19 – refocusing the company to meet the rapid shift in needs of customers, shoppers and retailers – has strengthened our conviction in its capacity to lead this important industry in partnership with brick and mortar retailers. We continue to believe that consumer adoption of online grocery will grow substantially in the coming years and are proud to deepen our investment in Instacart at this time,” said Dan Sundheim, Founder of D1 Capital Partners.
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