Instacart valued at nearly $14b in latest funding amid online sales boom

Photo: Bloomberg

Instacart said on Thursday it had raised $225 million in new funding round, valuing it at $13.7 billion, as the grocery delivery company cashes in on a surge in online shopping due to the COVID-19 pandemic.

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.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.