Instacart gains hundred of millions in funds

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Instacart gains hundred of millions in funds

By Louisa Hallett - 10/16/2018
The grocery industry is worth $1 trillion and a good chunk of that just went to Instacart.

The grocery industry is worth $1 trillion and a good chunk of that just went to Instacart.

Instacart, a North American leader in online groceries, announced it has raised $600 million as part of a financing round led by D1 Capital Partners. The investment from D1 Capital comes after a year of tremendous growth for Instacart and raises the company's 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 Apoorva Mehta, Chief Executive Officer and Founder of Instacart. "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."

Related: Aldi rolls with Instacart

Instacart expects to deploy the new capital from D1 Capital in a number of ways, including further expansion in North America, marketing investments to increase awareness of Instacart at our retail partners' stores, and recruiting world-class engineering and product development talent. Today, Instacart is accessible to more than 70 percent of U.S. households and more than 50% of Canadian households. Instacart serves more than 15,000 different grocery stores across 4,000 cities with a dedicated community of 50,000 shoppers.

Related: Online grocery sales to quadruple by 2023

Helping drive that growth are the company’s partnerships with more than 300 national, regional and local retailers such as Kroger, Aldi, Loblaw, Sam's Club, Sprouts, Publix, Albertsons and Walmart Canada.

To-date, Instacart has raised more than $1.6 billion in funding and has 600 full-time employees across North America.