Instacart has announced that it has raised some $225 million in a new funding round, valuing the company at $13.7 billion, as the grocery delivery company cashes in on a surge in online shopping due to coronavirus.
- Instacart raises $225 million in a new funding round
- The grocery delivery business is now valued at some $13.7 billion
- Instacart said an IPO is still on the horizon
The new financing round was led by venture capitalist firms DST Global and General Catalyst, while existing investor D1 Capital Partners also participated, the San Francisco-based company said.
Instacart was valued at $7.87 billion in its last funding round in November 2018, when it raised $871 million. The company now has nearly $1 billion in cash on its balance sheet.
Instacart’s order volumes have surged as much as 500% over the last few months as consumers, hesitant to travel to supermarkets amid the health crisis, take to their phones to get groceries, alcohol and prescriptions drugs delivered to their doorsteps.
Online sales at Target Corp and Walmart Inc have also ballooned, leading the retailers to pour billions into expanding their own delivery services. But, grocery chains such as Kroger and Costco Wholesale Corp have outsourced their delivery operations to Instacart, the brainchild of a former Amazon.com Inc supply chain engineer.
Instacart also said an initial public offering is still on the horizon without providing further details.
Proceeds will be used to expand its advertising unit and the arm of the business that develops shopping apps for grocers such as Wegmans, the company said.
It added that part of the funds would be used to invest in health and safety measures for its workers. The company has hired about 300,000 new workers since March.
The team at Platform Executive hope you have enjoyed the ‘Instacart valued at nearly $14 billion in latest funding amid online sales boom‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Uday Sampath in Bengaluru. Editing by Amy Caren Daniel and Sriraj Kalluvila.