Instacart Doubles Valuation to Whopping $39 Billion

shopper loading car with grocery delivery - Instacartjpg

Grocery-delivery company Instacart announced that it raised $265 million in a funding round that valued the business at $39 billion. This is more than double its valuation after a funding injection five months ago that raised $200 million at a valuation of $17 billion, which represented a doubling in value then.

See: Instacart and the Craziest Valuations of the Year
Find: AmazonFresh, Instacart and More: The Best Grocery Delivery Service for Your Budget

Instacart’s total funding amount, based on data from Crunchbase, is $2.7 billion raised over 17 funding rounds. This makes it the second-most highly valued private venture-backed company, behind Elon Musk’s SpaceX. Funds were provided by members of the company’s current investor group: Andreessen Horowitz; Sequoia; D1 Capital Partners; Fidelity and T. Rowe Price.

Instacart has been a major beneficiary of pandemic social distancing. More people have looked into delivery for some or all of their shopping, so Instacart services have been in demand. High unemployment made it easy to recruit shoppers, too. The company provides delivery for 300 different local and national retailers including Albertson’s (NYSE: ACI) and Target (NYSE: TGT). Now that so many people have tried delivery services, they are likely to continue using them when pandemic restrictions ease because of the convenience.

Building Wealth

See: Instacart and Trader Joe’s Are Paying Their Employees to Get Vaccinated
Find: Will Delivery Services Stay Popular Through 2021?

With this money in place, the company can finish its preparations for its likely IPO, expected to be led by Goldman Sachs (NYSE: GS). Instacart has been hiring for its executive team and adding board directors who have public company experience.

More from GOBankingRates

Share this article:

Building Wealth

About the Author

Ann Logue is a writer specializing in business and finance. Her most recent book is The Complete Idiot’s Guide: Options Trading (Alpha 2016). She lives in Chicago.
Learn More

Best Bank Accounts for September 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.