The San Francisco-based company Instacart that shops for and delivers groceries from about 200 retailers including Target Corp and Costco Wholesale Corp, said the new funding values the company at about $4.2 billion.
In a fresh funding, Grocery delivery Instacart has raised $200 million, boosting its valuation and providing new resources for the startup to compete against heavyweight Amazon.com Inc.
The San Francisco-based company Instacart that shops for and delivers groceries from about 200 retailers including Target Corp and Costco Wholesale Corp, said the new funding values the company at about $4.2 billion. That's up from the $3.4 billion valuation the company commanded when it raised $400 million nearly a year ago.
In the new round Coatue Management led the deal and included Glade Brook Capital Partners and existing investors. Sequoia Capital, Andreessen Horowitz and Whole Foods Market, among other investors have invested in Instacart previously.
Instacart allows shoppers to order groceries online via their app that are delivered to their home the same day. The company makes money through delivery fees and also through promotions and coupon deals it has with a number of brands including General Mills Inc, Coca-Cola Co and Pepsico Inc.
But Instacart faces uncertainty with the recent acquisition of Whole Foods by Amazon. Whole Foods has been one of Instacart's largest and most important grocery supply partners after the two signed a multiyear deal between the startup in 2016 for delivery provider for most Whole Foods goods. But Amazon, which has been steadily pushing into grocery delivery, said last week it is testing free two-hour delivery of Whole Foods groceries to Amazon Prime customers in certain U.S. cities.