SAN FRANCISCO — Instacart, which operates national on-demand grocery delivery service, has closed its Series E financing round led by Coatue Management, with participation from Glade Brook Capital and existing investors. The Series E financing of $350 million brings Instacart’s valuation to $4.35 billion.
The financing comes on the heels of a period of accelerating growth for Instacart, expanding across North America and partnering with the eight largest grocers in North America including Kroger, Albertsons, Publix, Costco, Ahold-Delhaize, HEB, Loblaw, and Sam’s Club. Instacart has raised over $1 billion since its founding in 2012, with the vast majority of this capital still in the bank. It is now available in 220 markets by using contractors to shop and pick up orders at stores and deliver them to customers.
“Technology has changed the way we travel, communicate, and shop. But for most, visiting the grocery store is still a part of the weekly routine,” said Kris Fredrickson, Partner at Coatue. “Instacart’s incredible service is quickly bringing the grocery shopping experience online. After having been impressed with the team’s execution over the last several years, we are excited to partner for the next phase of the Instacart journey.”
Instacart plans to use the new funding to double the size of its team, continuing to expand its delivery service across North America, and investing in new products and services.
“The online grocery market hit a tipping point last year, as more and more consumers demanded grocery delivery. We are excited to accelerate our plans to bring online grocery everywhere and to keep transforming the way people shop,” said Ravi Gupta, COO/CFO of Instacart. “We are also excited to welcome Coatue to our team and are grateful for the participation of our other new and existing investors.”