SAN FRANCISCO – Instacart has officially closed its Series E financing round for $350 million with investor Coatue Management. This brings the company’s valuation to $4.35 billion—$1 billion of which has been raised since its founding in 2012.
“The online grocery market hit a tipping point last year, as more and more consumers demanded grocery delivery,” says Ravi Gupta, Instacart COO/CFO. “We are excited to accelerate our plans to bring online grocery everywhere and to keep transforming the way people shop.”
The funding is an extension of a $200 million Series E round from February. The San Francisco-based on-demand grocery delivery startup says it plans to use the funding to double staff, invest in new services and expand its reach across the country.
Instacart is thriving. It’s still riding success from its partnership with Whole Foods in 2016. Revenue reports from December 2017 for same-day delivery service saw a 150% increase year-over-year. Last year, Express subscribers increased by 300% and launched in more than 160 new metropolitan areas—making the service available to nearly 70 million households.
Instacart also recently partnered with eight of the largest grocers in the U.S., including Kroger, Albertsons, Publix, Costco, Ahold-Delhaize, HEB, Loblaw and Sam’s Club—and is in talks with Walmart.