Instacart Recieves $600 Million in Funding, Hits $7.6 Billion
SAN FRANCISCO, CA - As grocery continues to shift to the digital world, Instacart is reaping the benefits. This week, Instacart announced it raised $600 million in its latest financing round led by D1 Capital Partners, upping its valuation to $7.6 billion.
“The U.S. is nearly a $1 trillion grocery market, and last year we saw almost every major grocer in North America bring their delivery business online in a significant way. We believe we’re in the very early stages of a massive shift in the way people buy groceries and we expect that one in five Americans will be shopping for their groceries online in the next five years,” said Instacart’s CEO and Founder Apoorva Mehta. “We’re excited to partner with D1 Capital on this investment, which is a testament to the growth we’ve seen and our ambitious plans for the future.”
Instacart plans to use this investment to expand further into North America, increase awareness of its brand in retail stores via marketing endeavors, and recruit additional engineering and product development talent, according to a press release.
“We have strong conviction in Instacart and its team and pursued the partnership because of the company’s unique industry leadership position and the growth opportunity ahead. Grocery is the largest category within U.S. retail and it is also one of the least penetrated online. The industry is at a tipping point and there will likely be a significant acceleration in the adoption of online ordering for grocery delivery over the next few years,” said Dan Sundheim, Founder of D1 Capital Partners. “We believe that traditional retailers will lead the category online, as their brick-and-mortar stores are the most effective distribution centers for fulfillment of online grocery orders. Instacart’s world-class management and engineering team has proven to be a highly effective partner for grocers to serve customers in new ways.”
Instacart currently has over 200 retail partners, including the likes of Kroger, Aldi, Loblaw, Sam’s Club, Sprouts, Publix, Albertsons, and Walmart Canada.
What's next for Instacart and online grocery? AndNowUKnow will continue to keep an eye on all the retail movements happening in the interwebs.