US-based grocery delivery service Instacart has raised $200 million in a new funding round led by existing investors Valiant Peregrine Fund and D1 Capital Partners.
Instacart offers grocery delivery and pickup services from several major retailers to consumers in the US and Canada, through an app-based platform and an online service. Instacart claims that the investment comes as consumer demand for Instacart’s online services continues to grow amid the current pandemic.
According to a statement from Instacart, the new funding will be used to enhance product development, focused on introducing new features and tools to enhance the customer experience; continue investment in the firm’s Instacart Enterprise product suite to support retailers’ end-to-end ecommerce needs; and further investment in Instacart Ads for consumer brands.
The company operates in approximately 5,500 cities in North America, and the firm has significantly expanded its operations in recent times. Instacart has partnered with several new retailers over the last year, and today the company has partnerships with more than 500 retailers and delivers from nearly 40,000 store locations across the US and Canada.
Earlier this year, the company announced plans to more than double its grocery shopper workforce to keep pace with growing consumer demand for online grocery delivery and pickup services due to the coronavirus pandemic.
Apoorva Mehta, founder and CEO of Instacart, 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. 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.
“While we’re proud of these milestones, we believe we have a lot more work to do to deliver for all the communities we serve. 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 customers.”
© FoodBev Media Ltd 2020