Instacart Is Now a $17.7B Company
Instacart has raised $200 million in new funding, further solidifying the company's position as a leader in grocery e-commerce.
The new financing round, led by existing investors Valiant Peregrine Fund and D1 Capital, brings the company’s valuation to $17.7 billion, which has more than doubled since the start of 2020.
“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,” said Apoorva Mehta, Founder and CEO of Instacart.
The investment comes as consumer demand for Instacart’s online grocery delivery and pickup services continues to grow and the company expands its marketplace with new and existing retail partners. Instacart has continued to partner with new retailers over the last year, and today the company partners with more than 500 retailers and delivers from nearly 40,000 store locations across the U.S. and Canada.
Instacart is available to more than 85% of U.S. households and more than 70% of Canadian households with delivery and pickup services across more than 5,500 cities in North America. The company expects to deploy the new capital in a number of ways, including: product development focused on introducing new features and tools to enhance the customer experience, continued investment in Instacart Enterprise to support retailers’ end-to-end e-commerce needs, and further investment in Instacart Ads to help connect Consumer Packaged Goods (CPG) brands of all sizes to customers shopping online from their favorite local retailers.
“Our conviction in the strength of Instacart’s management team and business model continues to grow as we’ve watched the company lead this important industry during a period of unprecedented growth. The opportunity for Instacart is significant, and we’re proud to once again increase our investment in the business,” said Dan Sundheim, Founder of D1 Capital Partners.
On Wednesday Instacart announced that its Senior Support Service, a high-touch support offering for customers over age 60, has brought more than 60,000 seniors online with online grocery delivery in the past month. Instacart developed the Senior Support Service to help seniors adopt online grocery delivery and stay safer ahead of the upcoming cold and flu season, when they may face increased health risks in light of the ongoing pandemic.
When a customer uses Instacart’s Senior Support Service, a dedicated specialist is ready to assist with a range of high-touch services -- from setting up an account, to filling a virtual cart and placing a first order, to providing tutorials on unique Instacart features like setting preferred replacements and chatting with their shopper, to troubleshooting problems or questions about an existing order.
With a team of more than 150 dedicated specialists, Instacart’s Senior Support Service currently assists an average of 2,000 seniors a day with a menu of high-touch services. The Senior Support Service is designed to accommodate more robust assistance and longer, more in-depth conversations, with Senior Support Service contacts lasting on average 20% longer than traditional contacts.
The Senior Support Service is available in the U.S. and Canada at 1-844-981-3433, daily from 8 a.m. - 11 p.m. ET.
Retail Leader sister publication Progressive Grocer just published an expansive profile on the company. Read it here.