Hotline: 1800 102 2007
X
Search Business Opportunities
Feb, 14 2018

Grocery startup Instacart raises $200mn, wants to battle Amazon

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.

Comment
image
Related opportunities
  • Ice creams & Yogurt Parlors
    About Us: The Pabrai Family has over 30 years of experience..
    Locations looking for expansion West Bengal
    Establishment year 2008
    Franchising Launch Date 2009
    Investment size Rs. 20lac - 30lac
    Space required 400
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Kolkata West Bengal
  • Others Food Service
    About : Everyday Anday was founded by Ms. Rashmi Joshi, with..
    Locations looking for expansion Maharashtra
    Establishment year 2016
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 450
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Video Game Centres
    About Us: VRUnreal was established in 2017, offering the first-fully equipped..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Ice creams & Yogurt Parlors
    About Thanco's Natural ice cream :-Though many things have changed from..
    Locations looking for expansion Karnataka
    Establishment year 2006
    Franchising Launch Date 2016
    Investment size Rs. 10lac - 20lac
    Space required 100 - 1000 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Bangalore Urban District Karnataka
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities